Iceland

Arion Bank: Raising estimates on macro recovery, Valitor sale and share buybacks

  • Arion has announced a further ISK8bn of share buybacks, in addition to the ISK15bn programme completed in H1

  • We lift our 2021 EPS forecast on better revenues, lower risk costs, the Valitor disposal gain and a lower share count

  • We price the shares off a 14.0% mid-cycle ROE (13.0% previously), leading to a new fair value of ISK180 (up 29%)

https://cdn.tellimer.com/providers/tellimer-avatarpng.png
July 4th, 2021
Subscribe to read this report

You can read this report by subscribing to a Starter or Pro plan today.

Already have an account? Log in

Disclosures

This report was commissioned by the company, sovereign or issuer that is the subject of the report. However, it was prepared by Tellimer the same way as independent investment research as contemplated by COBS 12.2 of the FCA Handbook and is a research recommendation under COBS 12.4 of the FCA Handbook. Where it is not technically a research recommendation because the subject of the research is not listed on any European exchange, it has nevertheless been treated in its preparation by Tellimer as a research recommendation to ensure consistent treatment of all Tellimer's research. This report has been produced by the analyst(s) named above (the "Analyst").

The Analyst certifies that the views and forecasts expressed in this report accurately reflect their personal views about the subject, securities, or issuers specified herein. In addition, the Analyst certifies that no part of their compensation was, is, or will be directly related to the specific recommendations or views expressed in this report.

This research is produced by a third party. The Tellimer team has had no editorial input into the content of the note.