SEB AB: Kepler Cheuvreux raises target price to SEK 210 from SEK 195

Kepler Cheuvreux has revised its target price for Skandinaviska Enskilda Banken AB (SEB), raising it to SEK 210 from SEK 195. This adjustment reflects the firm’s updated assessment of SEB’s financial outlook and market positioning. The change in the target price is attributed to improved expectations regarding the bank’s return on tangible equity (ROTE) and a more favorable valuation relative to its peers. Despite the increased target price, Kepler Cheuvreux has maintained a Hold rating for SEB, indicating that while the bank is expected to retain its value, significant upside potential is not anticipated at this time.

The firm’s analysis highlights SEB’s strong corporate banking segment as a key factor in the revised target price. Additionally, Kepler Cheuvreux noted a broader shift in market sentiment toward growth-oriented investments, which may impact investor interest in defensive stocks like SEB. Other analysts have also recently adjusted their outlooks for SEB. Jefferies upgraded the stock to Hold from Underperform, raising its price target to SEK 140 from SEK 135, while Citi increased its target to SEK 176 from SEK 164, maintaining a Neutral rating. These updates suggest a cautiously optimistic view of SEB’s potential to benefit from an economic recovery and volume growth, although valuation concerns persist.