Update shared on04 Sep 2025
Despite improved earnings momentum and capital strength, Swedbank’s price target was held steady at SEK262.33 as analysts cite limited valuation upside relative to peers and ongoing regulatory uncertainty.
Analyst Commentary
- Improved earnings momentum and robust capital generation have driven upward adjustments in price targets despite conservative or neutral rating stances.
- Valuation convergence with Swedish peers has reduced relative upside, limiting enthusiasm among some analysts.
- Lack of resolution on the U.S. authorities' investigation into Swedbank’s Baltic operations remains an overhang, with the anticipation of a settlement viewed as a key catalyst for re-rating.
- Neutral-rated analysts see incremental positive factors already largely priced in, justifying only modest target increases or decreases.
- Mixed outlook persists among analysts, with some price target increases reflecting recent performance, but without broad conviction for further outperformance until clarity emerges on regulatory risks.
What's in the News
- Swedbank launched SB1 Markets, an investment bank co-owned with SpareBank1, to strengthen its investment banking services in the Nordic region.
- SB1 Markets operates in Sweden, Norway, and the US, providing corporate finance, High-Yield DCM, ECM, research, and sales services.
- Swedbank holds a 20% stake in SB1 Markets, which employs around 270 people, with 25% based in Sweden.
- The creation of SB1 Markets leverages Swedbank's market expertise and distribution network to expand client offerings and access to investment banking services.
Valuation Changes
Summary of Valuation Changes for Swedbank
- The Consensus Analyst Price Target remained effectively unchanged, at SEK262.33.
- The Consensus Revenue Growth forecasts for Swedbank remained effectively unchanged, at -1.7% per annum.
- The Discount Rate for Swedbank remained effectively unchanged, at 6.17%.
Disclaimer
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