NRDBY - Nordea Not Dramatically Undervalued But Also Not Likely To Disappoint

• Nordea has managed the pandemic well so far, with management moving aggressively on losses, and overall credit quality still quite high on a relative basis.
• Management has shown that it's more interested in managing the business for margin and return than growth; Nordea won't compete aggressively on price in areas like mortgages.
• Nordea's management has diversified its risk profile, with no significant industry concentrations and a manageable weighting to commercial real estate lending.
• I expect mid-single-digit long-term core earnings growth from Nordea, and the shares look priced to produce mid-to-high single-digit annualized returns.

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