ABG Sundal Collier reiterates its buy recommendation on niche bank TF Bank despite the strong share price development, and raises the target price to SEK 450 (425). This is stated in a recent analysis.

The higher target price reflects the bank's raised estimates after the Q4 report, whose underlying net profit came in line with expectations. However, the report showed how "scalability continues to improve as revenues grow faster than costs, contributing to an improved C/I ratio, and contributing to a 36% annualized lift in operating profit," ABG writes.

Looking ahead, ABG expects further strong quarters in the first half of 2025.

"The announcement of new financial targets will be a further positive trigger for the case," the investment bank writes.

Buy is reiterated at an attractive valuation. ABG points out here that the stock is trading at a p/e of 10-14 times on expectations for 2025-2027, without fully accounting for the robust fundamentals of the case.