BUZZ-JPMorgan maintains a cautious stock picking strategy as increased competition casts a shadow over Nordic banks' prospects

November 9 - ** JPMorgan remains cautious on Nordic banks’ outlook before 2027, citing that although earnings prospects have improved, lending spreads are under competitive pressure and capital allocation remains uncertain

** The bank notes competition in the region is fierce, especially in Norway; at the same time, Swedish banks face political pressure and the potential for additional taxes, adding to the uncertainty

** The bank upgraded Danske Bank DANSKE.CO from “Neutral” to “Overweight”, lifting its target price by 25% to 424 Danish crowns, based on its more attractive valuation compared to Nordic peers

** The bank upgraded NOBA Bank NOBA.ST from “Neutral” to “Overweight”, with a target price of 119 Swedish crowns, citing strengthened earnings momentum and robust loan growth

** The bank upgraded Handelsbanken (SHBa.ST) from “Underweight” to “Neutral”, raising its target price by 23% to 159 Swedish crowns, reasoning that its earnings performance is defensive and dividend yield is high, despite weaker growth prospects and returns compared to peers

** JPMorgan maintains “Underweight” on Nordea Bank (NDAFI.HE) and SEB (SEBa.ST), while keeping “Neutral” on DNB (DNB.OL) and Swedbank SWEDa.ST

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