AnalystConsensusTarget updated the narrative for HUSQ B

Analysts have revised Husqvarna’s fair value estimate down from SEK 58.25 to SEK 52.08. They cite closer attention to structural challenges and the need for clearer recovery plans, even as the company continues to focus on innovation-led growth.

Analyst Commentary

Analysts continue to evaluate Husqvarna's outlook, highlighting both areas of strength and ongoing uncertainties that affect the company's valuation and growth trajectory.

• Bullish analysts point to Husqvarna’s sustained commitment to innovation, which is seen as a foundation for potential long-term revenue growth.
• There is confidence that the company’s focus on its core segments positions it well for a recovery if execution remains disciplined.
• Some optimism remains regarding Husqvarna's ability to adapt its strategy in response to structural challenges, supporting a more durable growth profile over time.

• Bearish analysts highlight persistent structural challenges that continue to weigh on Husqvarna’s valuation and limit near-term upside.
• The lack of a clear and credible recovery and growth plan is seen as a key overhang, with investor confidence subdued until management provides more detail.
• Recent financial updates underscore ongoing balance sheet pressures, which may constrain investment in growth initiatives going forward.
• Caution prevails regarding execution risks, especially in maintaining profitability amid market headwinds and increased competition.

What's in the News

• Husqvarna will decommission its factory in Brastad, phasing out production by the first half of 2027 and outsourcing manufacturing to third parties. This is expected to generate annual savings of SEK 100 million from 2027, with approximately SEK 140 million in associated decommissioning costs over 2025 and 2026. The impacted site currently employs 84 people and manufactures components for petrol-powered engines (Key Developments).
• The company is launching seven new robotic lawnmowers featuring AI Vision, advanced camera-led navigation, and night-time operation capabilities. The expansion includes both Gardena and Husqvarna brands. This marks a significant step in intelligent, low-carbon lawn care solutions for both residential and professional customers (Key Developments).
• Husqvarna hosted its Analyst/Investor Day, offering insights into its latest strategies, operational changes, and growth initiatives (Key Developments).

Valuation Changes

• The Fair Value Estimate has decreased from SEK 58.25 to SEK 52.08, reflecting a downward revision in analysts’ expectations.
• The Discount Rate has risen slightly, moving from 7.27% to 7.35%. This indicates a marginally higher perceived risk or required return.
• The Revenue Growth Projection has edged up from 2.25% to 2.43%, suggesting a modest improvement in anticipated top-line growth.
• The Net Profit Margin has decreased from 6.70% to 6.50%, highlighting slightly lower expectations for profitability.
• The Future P/E Ratio has fallen from 11.89x to 11.05x, signaling a reduction in expected earnings multiples.