Update shared on 28 Nov 2025
Fair value Increased 1.26%Analysts have raised their price target for Volvo Car AB (publ.) from SEK 26.49 to SEK 26.82. They cite improved projected revenue growth, profit margins, and a stronger future price-to-earnings outlook as key factors behind this modest upward revision.
Analyst Commentary
Recent updates from street research reflect a nuanced perspective on Volvo Car AB (publ.), with analysts highlighting both positive and cautionary factors linked to the company's outlook and valuation.
Bullish Takeaways
- Bullish analysts consider the upward revision in price targets a reflection of improved fundamentals and strong demand trends supporting revenue growth.
- There is optimism about Volvo's margin expansion, attributed to disciplined cost control and favorable shifts in product mix.
- The company's enhanced earnings outlook is seen as reducing downside risk to valuation, providing a more attractive relative price-to-earnings profile versus peers.
- Ongoing innovation and progress in electrification initiatives are viewed as catalysts for long-term growth, reinforcing confidence in the company's execution capabilities.
Bearish Takeaways
- Bearish analysts caution that, despite recent improvements, persistent volatility in macroeconomic conditions could pose challenges for sustained revenue acceleration.
- There are concerns about competition intensifying in the electric vehicle market, which could pressure margins and constrain market share gains.
- Ongoing global supply chain uncertainties remain a risk factor that could impact production costs and delivery timelines.
- Valuation adjustments to the price target are described as modest, which implies ongoing reservations regarding upside potential in the short term.
What's in the News
- Special/Extraordinary Shareholders Meeting scheduled for December 8, 2025, at Volvohallen, Gothenburg, Sweden (Key Developments).
- Successful launch of the XC70 next-generation long-range hybrid in China, meeting strong local demand (Key Developments).
- New hybrid model to be added at Volvo's South Carolina manufacturing plant before the end of the decade. This will be in addition to local production of the best-selling XC60 and is expected to boost capacity for the US market (Key Developments).
- Steady expansion of Volvo Cars' fully electric lineup with the ongoing ramp-up of EX90 production. There is also increased output of the EX30 at the Ghent plant in Belgium, and the ES90 is already on the road (Key Developments).
- The all-new, born-electric EX60 SUV is set for global debut in January 2026, with final road testing underway. This further strengthens Volvo Cars’ market position in the mid-size electric SUV segment (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen slightly, from SEK 26.49 to SEK 26.82. This change reflects renewed optimism in the company's valuation.
- Discount Rate has increased marginally, moving from 9.35% to 9.48%. This signals a modest uptick in perceived risk or cost of capital.
- Revenue Growth projections have improved, up from 3.41% to 3.43%. This indicates slightly stronger anticipated sales performance.
- Net Profit Margin estimates have edged higher, rising from 4.63% to 4.67%. This points to incremental improvement in expected profitability.
- Future P/E Ratio has climbed modestly, from 5.29x to 5.33x. This suggests a small adjustment in anticipated earnings multiples going forward.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.