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HUSQ B: Ongoing Restructuring Efforts And AI Rollouts Will Drive Margin Improvement

Update shared on 19 Nov 2025

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AnalystConsensusTarget's Fair Value
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1Y
-28.0%
7D
-0.9%

Analysts have lowered their price target for Husqvarna from SEK 55 to SEK 50, citing ongoing structural challenges as well as the need for clear management strategies to spur future growth.

Analyst Commentary

Recent analyst assessments reflect a balanced view of Husqvarna's prospects, highlighting both the company's strengths and areas where caution is warranted by investors.

Bullish Takeaways

  • Bullish analysts note that Husqvarna continues to demonstrate innovation-driven growth, particularly in product development. This could support future earnings potential.
  • The company’s broad market presence and established brand position it well for recovery if management introduces effective strategies.
  • There is recognition that proactive cost discipline and ongoing restructuring efforts may enable margin improvement over time.

Bearish Takeaways

  • Bearish analysts see limited near-term upside for the stock until management articulates a clear and credible plan for recovery and growth.
  • Persistent structural challenges are viewed as a headwind to both valuation and operational execution.
  • Uncertainty surrounding the pace and effectiveness of strategic initiatives introduces risk to projected earnings and growth targets.

What's in the News

  • Husqvarna Group will decommission its Brastad factory and outsource manufacturing to third parties. The company aims for annual savings of approximately SEK 100 million by 2027. The closure will impact 84 employees and result in SEK 140 million in related costs, phased through 2025 and 2026 (Key Developments).
  • The company launched seven new robotic lawnmowers featuring advanced AI Vision and night-time cameras, highlighting its focus on intelligent and low-carbon lawn care for both residential and professional markets. The new models support wire-free installation and smart obstacle avoidance, with further AI enhancements planned for 2026 (Key Developments).
  • Husqvarna recently held an Analyst/Investor Day, engaging with stakeholders on business performance and strategic direction (Key Developments).

Valuation Changes

  • Fair Value remains stable at SEK 52.08, indicating no adjustment since the last assessment.
  • Discount Rate has risen slightly to 7.50 percent from 7.35 percent. This reflects a modest increase in perceived risk or cost of capital.
  • Revenue Growth projection is virtually unchanged and holds steady at 2.43 percent.
  • Net Profit Margin estimate remains stable at 6.50 percent, with no material change from prior levels.
  • Future P/E ratio has increased marginally to 11.09x from 11.05x. This represents a minimal adjustment in valuation expectations.

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.