Danske Bank: BarCap reiterates 'overweight' rating.

(CercleFinance.com) - Danske Bank's stock had its 'overweight' rating reissued by analysts at Barclays Capital in a note issued to investors on Tuesday.


The broker says it sees further upside on the Danish Bank, which is now "firing on all cylinders."

BarCap points out that new partnership agreements with professional organisations will kick in this year, with existing ones continuing to generate a steady stream of customers.

This should enable Danske Bank to outperform the market, the broker says.

It adds that the institution's strong positions in Sweden, Norway and Finland mean higher growth rates in the medium term and gains in market share.

"From here, the outlook for margins is positive," Barclays writes in the report, which, given the bank's cost discipline, should immediately be seen in its earnings.

BarCap notes that the consensus expects Danske Bank to pay out approximately 100% of earnings in 2017, giving it the highest dividend yield in the European banking sector.

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