Barclays has upgraded its recommendation for online broker Avanza Bank to overweight from equal weight, while also initiating coverage on Flatexdegiro with the same rating.
The bank maintains a positive outlook on European and Nordic investment platforms, highlighting high growth, strong return on equity, net interest income potential, and expansion opportunities, according to Reuters.
Avanza is identified as the sector favorite, with Barclays arguing that the stock trades at an unjustified discount compared to Nordnet. The bank also pointed to Avanza's strategic push into the Danish market.
For Flatexdegiro, Barclays anticipates the strongest earnings per share growth in the sector and sees valuation upside following this year's share price decline.
The price target for Avanza has been raised to 420 kronor from 340 kronor, while Flatexdegiro received a price target of €41. Nordnet's price target was increased to 310 kronor from 260 kronor, though its recommendation remains at underweight.
flatexDEGIRO SE, formerly flatexDEGIRO AG, is a Germany-based online brokerage and banking company. The Company operates as parent financial holding company and is engaged in providing online brokerage activities for retail clients in approximately 16 European countries. It focuses on investors who trade securities without investment advice to build their wealth. The Company’s business activities are the supply of technologies in the online brokerage market and financial sector, as well as the provision of financial services and Information Technology (IT) services. In addition, the Company, through its brokerage platforms offers clients access to more than 50 stock exchanges worldwide, as well as directs Over-the-Counter trading (OTC) trading. It operates three brokerage platforms namely flatex, DEGIRO and ViTrade itself and also runs a regulated bank in Germany.
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