Anticipated Revenue Declines And Shrinking Margins Could Harm Profitability

The analyst price target for Svenska Handelsbanken has increased from SEK 121.64 to SEK 123.20. Analysts cite updated sector research and shifts in ratings as key drivers for the adjustment.

Analyst Commentary

Recent street research on Svenska Handelsbanken reflects a mixed outlook, with varied adjustments to ratings and price targets. The following summarizes the key bullish and bearish views driving analyst expectations for the bank’s future performance.

• Bullish analysts have raised price targets in response to perceived improvements in the sector. This suggests confidence in Svenska Handelsbanken’s ability to navigate current market conditions.
• Some see potential for positive value creation that could support a higher share price. Revised targets indicate expectations of growth.
• The bank’s operational resilience and stability continue to be acknowledged. Upward price target adjustments point to steady fundamental execution.

• Bearish analysts have maintained cautious ratings despite increased price targets, citing concerns about limited upside relative to peers.
• Recent downgrades reflect skepticism regarding the sustainability of the bank’s recent performance and outlook. Some analysts expect growth to moderate.
• Certain analysts have lowered their targets, highlighting risks around valuation and operational momentum. They express doubt about significant near-term acceleration.
• There remains an undercurrent of concern about the bank’s ability to outperform sector benchmarks in the face of ongoing market challenges.

Valuation Changes

• Consensus Analyst Price Target has risen slightly, moving from SEK 121.64 to SEK 123.20.
• Discount Rate remains virtually unchanged at approximately 9.97%.
• Revenue Growth projections have fallen significantly, shifting from 0.35% to -0.26%.
• Net Profit Margin is slightly lower, moving from 39.76% to 39.26%.
• Future P/E ratio has increased from 13.15x to 13.73x.