Sentiment improving for Nordic platforms, but better potential is elsewhere - Barclays

Allfunds

03/06/2024 11:54

** Barclays notes better sentiment for Nordic investment
platforms as retail trading dynamics have improved in recent
months, but sees better cyclical opportunities elsewhere
    ** "Despite better trading dynamics, the net impact of
changing market and macro conditions remains a mixed bag for the
Nordic platforms" - Barclays
    ** The broker sees the improvement to be cyclical as well as
seasonal, expecting it to continue into H2 2024
     ** However, it still sees better cyclical gearing elsewhere
due to net interest income (NII) headwinds, which mean that
better trading may not translate to EPS growth
    ** Barclays points out that NII makes up about 45% of
revenues for Avanza  AVANZ.ST  and about 60% for Nordnet
 SAVE.ST , expecting lower rates to act as a 6%/10% drag on
earnings between 2023 and 2025, respectively
    ** It upgrades Avanza to "equal-weight" from "underweight"
given more rewards than risks for the stock, and keeps
"underweight" on Nordnet 
    ** Within the sector, it prefers exposure to better cyclical
conditions through "overweight"-rated Allfunds  ALLFG.AS  or
Schroders  SDR.L 

  

 (Reporting by Marta Frąckowiak)
 ((marta.frackowiak@thomsonreuters.com))