JPM upgrades Nordnet to 'neutral', cites technology advantage

Avanza Bank Holding AB

22/05/2024 10:40

** J.P. Morgan upgrades Swedish investment firm Nordnet
 SAVE.ST  to "neutral" from "underweight", saying the company
could increase its longer term market share owing to technology
advantage over its top peer Avanza  AVANZ.ST  
    ** It notes the platform's ability to launch new products
and implement new functionalities, including ongoing transition
to cloud technology
    ** It says Nordnet could win market share at the possible
expense of Avanza due to increase in marketing spend enabled by
high operating leverage
    ** Avanza still needs to upgrade its technology and
transition to the cloud, the broker says
    ** However, it notes that current valuation is "very
generous" and most likely based on volatile NII and brokerage
revenues, which may lead to underperformance in the near future
    ** Out of 11 analysts covering Nordnet, four rate the stock
"strong buy" or "buy", ​three "hold" and four​ "strong sell" or
"sell"

 (Reporting by Anna Chaberska)
 ((Anna.chaberska@thomsonreuters.com))