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HTRO: Future Acquisitions Will Drive Strong Long Term Upside Potential

Global 5G And Broadband Expansion Will Fuel Fiber Adoption

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HTRO
AnalystHighTarget
Not Invested
Published 01 Aug 2025

Update shared on 12 Dec 2025

Fair value Decreased 13%
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AnalystHighTarget's Fair Value
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1Y
-39.6%
7D
7.1%

Analysts have lowered their price target on Hexatronic Group from SEK 30.00 to SEK 26.00, reflecting a higher discount rate and a reduced valuation multiple, despite slightly improved expectations for revenue growth and profit margins.

What's in the News

  • Management reaffirmed that acquisitions will remain a strong strategic focus for Hexatronic Group AB (publ), supporting its long term growth ambitions. (Key Developments)
  • Deputy CEO Martin Åberg highlighted that continued acquisitions are considered important for achieving the company’s 2028 sales target. (Key Developments)
  • Hexatronic signaled it is actively looking for acquisition opportunities as part of its capital allocation and expansion strategy. (Key Developments)

Valuation Changes

  • The fair value estimate was reduced from SEK 30.00 to SEK 26.00, indicating a moderate downward revision in the implied share valuation.
  • The discount rate increased from 8.33 percent to 8.90 percent, reflecting a slightly higher required return or perceived risk profile.
  • Revenue growth was raised from 4.30 percent to 4.80 percent, signaling a modest improvement in medium term growth expectations.
  • The net profit margin increased from 6.73 percent to 7.78 percent, pointing to a slightly more optimistic view on future profitability.
  • The future P/E was cut from 13.8x to 10.4x, representing a significant derating in the valuation multiple applied to projected earnings.

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Disclaimer

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