Swedbank Large Corporates & Institutions Equity Research department operates with 5 recommendation categories based on expected absolute return for the security 12 months forward. The absolute return includes share appreciation and dividend yield combined.
- Strong Buy: The absolute return is estimated to be in excess of 15%
- Buy: The absolute return is estimated between 5% and 25%
- Neutral: The absolute return is estimated between 0% and 10%
- Reduce: The absolute return is estimated between 5% and -10%
- Sell: The absolute return is estimated to be less than -5%
Share price target: All share price targets are based on a 12 month horizon.
Swedbank Large Corporates & Institutions Equity Research department bases the recommendations on a variety of standard valuation models. Shares are commonly valued on a DCF-basis, except financial companies. Price-to-book value relative to long term historical empirical averages and/or relative to Return on equity are commonly deployed as are Net Asset Value models for companies with liquid markets for their assets. Shorter-term considerations are often included in the form of relative Price-to-Earnings ratios and Enterprise Value-to-Earnings before amortization, depreciation, interest and taxes.
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I/we hereby certify that the views expressed in this research report accurately reflect my personal views about the subject securities and issuers. I/we also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this research report. Analyst compensation may relate to the revenues of Swedbank as a whole.
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