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NLFSK: Future Profitability And Takeover Offer Are Expected To Shape Returns

Fixed-cost Pressures Will Curb Outlook Yet Reveal Hidden Value

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NLFSK
AnalystLowTarget
Not Invested
Published 29 Jul 2025

Update shared on 15 Dec 2025

Fair value Increased 16%
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AnalystLowTarget's Fair Value
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1Y
33.5%
7D
0.1%

Analysts have raised their price target for Nilfisk Holding by roughly 16 percent to about 145 currency units, citing a shift to positive revenue growth expectations, a materially higher projected profit margin, and a lower anticipated future price to earnings multiple.

What's in the News

  • Freudenberg Home and Cleaning Solutions GmbH agreed to acquire Nilfisk Holding A/S for approximately DKK 3.79 billion in cash, with the Nilfisk Board unanimously intending to recommend that shareholders accept the offer, subject to customary conditions and approvals (M&A Transaction Announcements)
  • The takeover offer requires a minimum acceptance level of 90 percent of all shares plus one share, excluding treasury shares, and is contingent on merger control and foreign subsidies regulation approvals (M&A Transaction Announcements)
  • Completion of the Freudenberg Nilfisk transaction is expected between January 1, 2026 and June 30, 2026, pending regulatory clearances and shareholder acceptance levels (M&A Transaction Announcements)
  • Nilfisk Holding A/S narrowed its 2025 organic revenue growth guidance to around 1 percent, compared with the earlier range of 1 percent to 3 percent, citing assumptions including stable EMEA markets and moderate APAC growth (Corporate Guidance, Lowered)

Valuation Changes

  • The fair value estimate has risen moderately from about DKK 125.0 to approximately DKK 145.0 per share, indicating a higher assessed intrinsic value for Nilfisk Holding.
  • The discount rate has edged down slightly from roughly 7.94 percent to about 7.93 percent, indicating a marginally lower required return in the valuation model.
  • Revenue growth has shifted markedly from a projected decline of around 1.0 percent to expected growth of approximately 2.0 percent, signaling a more optimistic outlook for revenue.
  • The net profit margin has increased significantly from about 6.9 percent to roughly 11.2 percent, reflecting a stronger profitability assumption in future years.
  • The future P/E multiple has fallen notably from around 8.3x to approximately 5.5x, suggesting that the updated valuation assumes a lower earnings multiple for the shares.

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