08:13 AM EDT, 04/23/2026 (MT Newswires) -- Berenberg confirmed its hold rating on Avanza Bank Holding (AZA.ST) as it took note of the Swedish lender's plans to enter the Danish market in 2027, marking the first in its international expansion, alongside its first-quarter 2026 results.

"We view this as a "low-risk"choice given the similarity of Denmark with its home market of Sweden. At the same time, we believe that the revenue opportunity will be limited, at the least in the medium term, given the relatively small size of the country, well-established competitors and Avanza's cautious marketing budget. Initial investment and start-up costs will weigh on margins and returns in the coming years,"the research firm said Thursday. "While we welcome the expansion of the TAM and the clarity about the next major strategic step, the medium-term financial opportunity from the move is not enough for us to change our neutral stance on the shares."

On the earnings side, Avanza Bank reported a first-quarter profit of 754 million kronor and operating income of 1.26 billion kronor, up from 707 million kronor and 1.15 billion kronor a year ago, respectively. The results were broadly in line with Berenberg's and consensus expectations.

Against this backdrop, Berenberg lifted its operating income forecasts for the company by 2%, citing higher interest rate assumptions for its liquidity portfolio. Meanwhile, EPS estimates for 2026 increased, while those for 2027 and 2028 were nudged down to reflect cost estimates for the Denmark expansion.

The price target of 380 kronor was unchanged.