JPM ups Intrum on improving servicing margins

Intrum AB

13/06/2025 12:47

** J.P.Morgan upgrades Swedish debt collector Intrum  INTRUM.ST to "neutral" from "underweight" on better servicing profitability

** The brokerage says it updates its estimates, taking into account the trends seen during Q1 which pointed to better costs, driven by the Servicing division

** As servicing profitability has improved, JPM expects Intrum to be able to reach its >25% EBIT margin target for the unit in 2026

** "That's important given Intrum is trying to pivot its business model towards capital-light Servicing," it says

** According to the brokerage, Intrum has some room to 'breathe' and focus on restoring the overall profitability, cash generation and de-leveraging

** While post the ongoing debt restructuring Intrum will have no refinancing needs until 2027, a 3.6x leverage ratio in 2027 remains elevated, it points out

** The brokerage raises its price target by 45% to SEK 45

 (Reporting by Marta Frąckowiak)

 ((marta.frackowiak@thomsonreuters.com))