J.P. Morgan recently upgraded Swedish investment firm Nordnet SAVE from “underweight” to “neutral”, citing the company’s potential to increase its market share in the long term. The firm highlighted Nordnet’s technological advantage over its competitor Avanza AZA, noting its platform’s ability to launch new products and implement new functionalities, including a transition to cloud technology.
According to J.P. Morgan, Nordnet’s increased marketing spend could potentially allow it to gain market share at the expense of Avanza, which still needs to upgrade its technology and transition to the cloud. However, the broker also mentioned that Nordnet’s current valuation is considered to be “very generous” and largely based on volatile net interest income and brokerage revenues, which could lead to underperformance in the near future.
Despite the concerns raised by J.P. Morgan, out of the 11 analysts covering Nordnet, four rated the stock as either “strong buy” or “buy”, three as “hold”, and four as “strong sell” or “sell”. This mixed sentiment suggests that opinions on Nordnet’s prospects vary among analysts in the market.