Update shared on08 Oct 2025
Fair value Decreased 16%Analysts have lowered their price target for SEB from €101.60 to €85.10, citing more severe-than-expected impacts from U.S. tariffs and revised assumptions for growth and profitability.
Analyst Commentary
Recent analyst revisions reflect a more cautious outlook for SEB, following increased exposure to U.S. tariffs and consequent impacts on the company's growth trajectory and profitability.
Bullish Takeaways
- Bullish analysts believe SEB still has a strong underlying business model that can drive long-term growth, especially if global economic conditions stabilize.
- There is confidence in the company's ability to adapt its supply chain and mitigate cost pressures over time. This could support improved margins in future periods.
- SEB's established market presence and diversified product portfolio are viewed as key strengths for weathering short-term volatility.
Bearish Takeaways
- Bearish analysts note that escalating U.S. tariffs have led to more significant cost headwinds than previously anticipated. This has put pressure on profitability and valuation multiples.
- There is concern over slower growth assumptions, as the revised price targets factor in a more prolonged impact from global trade dynamics.
- Uncertainty regarding how quickly SEB can implement operational adjustments has led to downgrades. Execution risk remains elevated in the near term.
What's in the News
- Groupe SEB has provided sales guidance for the third quarter of 2025, expecting a slight organic decline and results below the company’s forecasts (Key Developments).
- The company revised its full-year 2025 earnings guidance, now anticipating stable to slightly positive organic sales growth compared to the previously expected 2% to 4%. Operating results from activity are forecasted at €550 million to €600 million, which is lower than the earlier forecast of €700 million to €750 million (Key Developments).
- SEB SA also lowered its annual organic sales growth outlook for 2025, now targeting a range of 2% to 4% instead of the earlier projection of around 5% (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has fallen significantly from €101.60 to €85.10, reflecting reduced confidence in near-term growth and profitability.
- Discount Rate has risen slightly, increasing from 10.40% to 10.93%. This suggests a higher perceived risk profile for SEB.
- Revenue Growth expectations have been reduced from 4.15% to 3.03%. This indicates more conservative assumptions about future sales expansion.
- Net Profit Margin forecast has decreased from 5.67% to 5.14%, pointing to anticipated pressures on profitability.
- Future P/E (Price-to-Earnings) Ratio has fallen modestly from 14.19x to 13.73x. This signals a minor decline in SEB’s valuation multiple.
Disclaimer
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