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Danske Bank’s Strong Financial Performance and Upbeat Outlook Support Buy Rating

Danske Bank’s Strong Financial Performance and Upbeat Outlook Support Buy Rating

Analyst Gulnara Saitkulova from Morgan Stanley maintained a Buy rating on Danske Bank (0NVCResearch Report) and keeping the price target at DKK265.00.

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Gulnara Saitkulova’s rating is based on Danske Bank’s recent financial performance and forward-looking outlook. The bank’s net income for the fourth quarter of 2024 significantly surpassed market expectations, with revenues 7% higher and net interest income 2% above consensus. Fee income also exceeded projections by a notable margin of 23%, demonstrating strong business momentum.
Furthermore, Danske Bank’s capital position, while slightly below consensus due to capital distribution deductions, remains robust. The bank has announced a share buyback program and a total dividend payout that surpasses market estimates, reflecting confidence in future earnings. The guidance for 2025 indicates a potential for upgraded consensus forecasts, with net profits expected to be in line with or slightly ahead of market expectations. These factors contribute to a positive outlook for the stock, supporting the Buy rating.

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