Swedbank updates small-cap portfolio with defense and tech stocks

Swedbank has updated its small-cap stock portfolio, signaling a strategic shift toward defense technology and undervalued software companies. The bank added Mildef to its list, citing the European rearmament wave, recent acquisitions, and new framework agreements as primary growth drivers.

Additionally, Swedbank included Vitec in its portfolio, suggesting that the market has overreacted to concerns regarding artificial intelligence. The bank believes Vitec is currently trading below its fundamental value due to organic growth and rising margins. To accommodate these additions, the bank removed Asker and Logistea from its list, though it maintains buy recommendations for both.