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NDA FI: Share Buybacks And Margins Will Shape Fair Value Outlook

Analysts Raise Nordea Bank Price Target as Valuation Metrics Improve on Share Buyback Program

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NDA FI
AnalystConsensusTarget
Not Invested
Published 07 Nov 2024

Update shared on 06 Dec 2025

Fair value Increased 0.61%
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Analysts have nudged their price target for Nordea Bank Abp slightly higher from €15.34 to €15.44, citing marginally stronger long term revenue growth, improved profit margin expectations, and a modestly lower discount rate that together support a slightly richer valuation multiple.

What's in the News

  • Nordea acted as Joint Lead Manager alongside Danske Bank for Tryg Forsikring's planned issuance of NOK and or SEK denominated Perpetual Restricted Tier 1 Capital Notes, targeting a 5.75 year maturity to first call with an expected Baa3 rating and loss absorption features (Key Developments).
  • From July 1 to September 30, 2025, Nordea completed a share buyback tranche, repurchasing 16,661,567 shares for €215.77 million. This brought total purchases under the June 16, 2025 program to 19,292,616 shares, or 0.56 percent of outstanding shares, for €249.84 million (Key Developments).

Valuation Changes

  • The fair value estimate has risen slightly, from €15.34 to €15.44 per share, reflecting a modestly richer valuation.
  • The discount rate has edged down marginally, from 6.91 percent to about 6.91 percent, supporting a slightly higher present value of future cash flows.
  • Revenue growth has increased slightly, from about 2.38 percent to about 2.46 percent, indicating a modestly stronger long term growth outlook.
  • Net profit margin has risen slightly, from about 39.09 percent to about 39.56 percent, implying a small improvement in expected profitability.
  • The future P/E multiple has decreased marginally, from about 12.69x to about 12.59x, suggesting a slightly lower earnings multiple applied in the updated valuation.

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