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Industry favorites are Swedbank’s favorite stocks in each sector and the investment horizon is 12 months.
In the latest update from Aktiell, Swedbank’s investment site, the bank states that it is currently advocating for companies that benefit from a continued, sequential recovery in the economy.
But Skanska is removed from the list and replaced by JM. With regard to homebuilder JM, the Kepler Cheuvreux research house, responsible for Swedbank’s equity analysis, believes that the company’s stability justifies higher multiples.
“The Swedish housing market was unexpectedly strong in 2020 with an average price increase of 11 percent in Sweden and 5 percent for condos (according to Valueguard). We see this favorable underlying market opening up to positive surprises, ”Kepler Cheuvreux analysts write.
It is also noted that JM has been one of the few developers to have started construction in 2019 and 2020, which means that JM will face less competition once these houses are completed in 2021-2022.
“With rising prices, increased reliance on vaccination programs, and interest rates remaining very low, the outlook for the future is undoubtedly good. Therefore, we also found that the stock should be able to trade at multiples higher than the historical averages, so we find the company with an attractive value, “writes the analyst and recommends buying with the target price of 360 SEK, which corresponds to an increase of almost 20 percent.
Swedbank’s other favorites in real estate and construction are Hufvudstaden and SBB.