Handelsbanken today updated its list of sector favorites, replacing Swedbank with Nordea in the banking sector.
“We believe Nordea is undervalued relative to the sector. Additionally, the bank is expected to resume its share buyback program in the first quarter of 2025, which we see as a potential positive trigger. Additionally, the benefit of Nordea’s derivative hedge on interest charges, which it is the only one in the sector, will start to materialize in the coming quarters. Conversely, we expect the Riksbank’s indications of further reductions. “fast policy rates, continued low growth in Swedish loan stocks and interest rate sensitivity in Baltic operations are putting pressure on Swedbank’s interest income,” the bank writes.
Another change is that Handelsbanken is temporarily removing consumer discretionary products from favored sectors. The reason is temporarily limited coverage of companies in the sector. Previously, H&M was the bank’s favorite in this sector.
Stocks included in the list are now Castellum, Epiroc, Essity, Hexagon, MTG, Nordea and Sobi.
