Danske Bank has faced numerous challenges in recent years, from the impact of COVID-19 to the ongoing money laundering issues. However, according to a recent analysis by Kepler Cheuvreux analyst Christoffer Adams, the bank is now in a position to start returning significant capital to its shareholders.
Adams predicts that shareholders could receive a capital return of 20.8 billion Danish kroner in 2025 and 19.9 billion Danish kroner in 2026, representing 22 percent of the current stock price. This year, he expects Danske Bank to distribute 12.6 billion Danish kroner and buy back shares worth an additional 8.2 billion.
With these positive developments, Adams has recommended a buy rating for Danske Bank stock, setting a target price of 245 Danish kroner.
Meanwhile, Adams’ colleague Markus Sandgren has reiterated his hold recommendation for SEB, noting that the Swedish bank is currently one of the most highly valued banks in Europe with a P/B ratio of 1.4. Sandgren expresses concerns about SEB’s exposure to the Baltic region but maintains his hold recommendation due to expectations of high capital returns from additional dividends and share buybacks, thanks to the company’s strong capitalization.
While Danske Bank appears poised for a strong recovery and capital return to shareholders, SEB faces challenges that may impact its valuation and performance in the coming years. Investors will need to carefully consider the recommendations of analysts like Adams and Sandgren as they navigate the complex landscape of European banking.