Handelsbanken sees buying opportunity after Balder's 'massive' underperformance

Fastighets AB Balder

11/05/2026 12:53

** Handelsbanken upgrades Fastighets AB Balder BALDb.ST to ''buy'' from ''hold,'' saying the landlord's "massive" underperformance in Q1 creates a buying opportunity

** Until Friday's close the Swedish real estate company's shares were down 19%, and fell 40% since mid-2024, it notes

** Handelsbanken says that Balder's size, diversification and large exposure to relatively low-risk residential properties become more relevant to the brokerage's investment case

** While the group seems to lack growth prospects, the 45% NRV discount and P/E of 12x compensate for slow growth, it argues

** Handelsbanken also expects Norion Bank NORION.ST spin off to improve Balder's earnings quality, and highlights the potential for buybacks in 2026

** Handelsbanken reiterated its 12-month TP for Balder of SEK 73, indicating a potential upside of over 30%

** Balder shares rise nearly 6% at 1115 GMT and are among best performers on European STOXX 600 index .STOXX

** The stock is on track for biggest one-day move since April 10, 2025

(Reporting by Alexander Klyve Gudbrandsen)

((alexanderklyve.gudbrandsen@thomsonreuters.com))