Morgan Stanley cuts Handelsbanken to 'underweight' as 'NII tailwinds fade'

** Morgan Stanley downgrades Swedish bank Handelsbanken SHB_A to "underweight" from "equal weight," citing softening net interest income, completed cost initiatives and a Q1 buffer release

** The broker sees risks building for the second half of 2025, with "NII tailwinds for Swedish banks are fading" as deposit costs stabilize and asset-side repricing shows

** It also points out that peer Swedbank SWED_A appears particularly exposed, given its high sensitivity and cumulative NII gains

** Out of 19 analysts that cover Svenska Handelsbanken, three rate the stock "strong buy" or "buy," ​seven rate "hold" and nine​ rate the stock "strong sell" or "sell" - LSEG data