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BRG: Government Support And Stable Outlook Will Offset Temporary Production Disruption

Analysts Adjust Borregaard Price Target and Valuation Following Recent Updates and Ongoing Developments

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BRG
AnalystConsensusTarget
Not Invested
Published 02 Feb 2025

Update shared on 05 Dec 2025

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12.0%
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4.0%

Analysts have nudged their price target on Borregaard slightly higher to NOK 212.50, reflecting marginally lower discount rate assumptions and continued expectations for steady revenue growth, profit margins, and valuation multiples.

What's in the News

  • NOK 15 million in funding from the Norwegian Research Council will support Borregaard’s Biomer project, which aims to develop bio based alternatives to fossil based polycarboxylates used across agriculture, industry, and household products (Regulatory Authority: Compliance).
  • Biomer will leverage Borregaard’s Sarpsborg biorefinery and wood chemistry expertise to create greener polymers with lower environmental impact and reduced carbon footprint (Regulatory Authority: Compliance).
  • An unforeseen outage at a Sarpsborg facility supplying a key chemical for speciality cellulose temporarily restricted production to off spec grades, delaying some shipments (Halt/Resume of Operations: Unusual Events).
  • Production of lignin based biopolymers, bio vanillin, bioethanol, and cellulose fibrils at the Sarpsborg biorefinery continued unaffected during the outage, limiting operational and customer disruption (Halt/Resume of Operations: Unusual Events).

Valuation Changes

  • Fair Value: Unchanged at NOK 212.50 per share, indicating a stable central valuation estimate.
  • Discount Rate: Fallen slightly from 6.90 percent to 6.88 percent, implying a marginally lower required return.
  • Revenue Growth: Effectively unchanged at around 5.83 percent, signaling steady top line growth expectations.
  • Net Profit Margin: Stable at approximately 12.70 percent, reflecting no material shift in profitability assumptions.
  • Future P/E: Edged down slightly from 22.39 times to 22.38 times, indicating a marginally lower valuation multiple applied to future earnings.

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