UBS raises Avanza stock rating to Neutral on valuation concerns easing

LootboxPhobia · 2026-03-03T11:24:36+00:00

UBS upgrades Avanza Bank Holding AB from Sell to Neutral, maintaining a target price of 320 SEK. Expected 2026 earnings per share to grow by 3%, and launching fully digital management services to attract customers. Despite the optimistic outlook, its trading price remains relatively low.

LootboxPhobia

2026-03-03 11:24:36

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Investing.com - UBS upgraded Avanza Bank Holding AB (NASDAQ:AZA) from Sell to Neutral on Tuesday, while maintaining a target price of 320 SEK, citing that concerns over valuation, net interest income headwinds, and slowing trading activity are no longer issues.

The company raised its 2026 earnings per share forecast by 6%, reflecting a more optimistic outlook on net brokerage income, currency-related income, and cost reductions. UBS now expects 2026 EPS to grow by 3%, rising to 9% in 2027, and reaching 10% in 2028.

UBS expects limited growth in net brokerage income and net interest income in 2026, offset only by increases in fund commissions and currency-related income.

The company predicts that stable interest rates will allow net interest income to recover and grow thereafter, aligning more closely with the growth trend of savings capital. Avanza aims for a 15% annual growth rate by 2030.

The company noted that Avanza plans to launch a fully digitalized discretionary management service in 2026, after acquiring Sigmastocks on July 1, 2025.

This should help retain client assets that previously moved to competitors due to the lack of full discretionary services.

Based on a target price of 320 SEK, Avanza would be trading at a 17.7x estimated P/E ratio for 2027.

UBS pointed out that despite a clear positive trend in Swedish consumer confidence and an optimistic outlook for the Swedish savings market in 2026, Avanza’s trading price remains at the lower end of its long-term consensus P/E range for the next twelve months.

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