Operating Model Reforms And Biomaterial Focus Will Unlock Efficiency

Valmet Oyj’s analyst price target has been slightly lowered from €28.74 to €28.46. Analysts point to steady but modest revisions in growth and margin forecasts supporting the update.

Analyst Commentary

Recent updates from the analyst community reflect both optimism and caution regarding Valmet Oyj’s outlook, valuation, and prospects for execution.

• Bullish analysts highlight the company’s favorable risk-reward profile following upgrades. This view is supported by its robust order intake and strong market positioning.
• There is an expectation for improved growth in core segments, which could lead to outperforming margin targets over the next fiscal year.
• Recent upgrades to a higher rating signal increased confidence in management’s ability to execute on efficiency and integration initiatives.
• The revised price target indicates market belief in the potential for capital appreciation as the company delivers on strategic projects.

• Bearish analysts caution that current valuation already reflects much of the anticipated earnings recovery, which leaves limited room for upside surprise.
• There are ongoing concerns about the pace of margin expansion, particularly if market conditions remain muted.
• Modest forecast revisions suggest some skepticism regarding the sustainability of recent growth momentum.

What's in the News

• Valmet Oyj will deliver a new energy-efficient evaporation line with advanced technology to Altri Biotek mill in Portugal as part of a EUR 75 million transformation project. This initiative aims to improve the mill's energy and water efficiency. (Client Announcement)
• The company has received an order to supply a sack and kraft paper machine, as well as automation and services, to Guangxi Jianhui Paper in China. The project is intended to enhance packaging production capabilities, with startup scheduled for the end of 2026. (Client Announcement)
• Valmet will deliver an IntelliTissue 1600 tissue machine to PT Suparma Tbk’s mill in Surabaya, Indonesia. The new production line will increase tissue capacity by 26,500 tons per year, with startup planned for 2026. (Client Announcement)
• Valmet has signed a multi-year, nationwide agreement with Petrobras in Brazil to supply spare parts and services for Neles valves and equipment. The agreement supports operational continuity in oil, gas, and power generation. (Client Announcement)
• The company reaffirmed earnings guidance for 2025 and projects net sales to remain at the previous year's level. (Corporate Guidance)

Valuation Changes

• Consensus Analyst Price Target has declined slightly from €28.74 to €28.46.
• The Discount Rate has risen marginally from 7.47 percent to 7.56 percent, indicating slightly higher perceived risk or return expectations.
• The Revenue Growth forecast has edged down from 4.03 percent to 4.00 percent.
• The Net Profit Margin is projected to improve slightly, increasing from 9.41 percent to 9.44 percent.
• The Future P/E ratio has decreased from 11.80x to 11.69x, reflecting a modest shift in valuation assumptions.