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LIAB: Future M&A Activity Will Shape Fairly Valued Ventilation Leader

European Market Weakness And Supply Risks Will Persist

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LIAB
AnalystLowTarget
Not Invested
Published 20 Jul 2025

Update shared on 14 Dec 2025

Fair value Increased 9.74%
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AnalystLowTarget's Fair Value
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1Y
-12.3%
7D
-0.8%

Narrative Update on Lindab International

Analysts have raised their price target on Lindab International from SEK 195 to SEK 214. This reflects increased confidence in the company’s valuation, despite slightly more conservative assumptions for revenue growth and profit margins, along with a higher projected future P E multiple.

What's in the News

  • Lindab International is actively seeking new acquisitions as a core part of its growth strategy, focusing on opportunities that strengthen its position in the European ventilation market (Key Developments).
  • The company completed the acquisition of Polish ventilation specialist Ventia in July, adding competencies in sales of technical products, including air handling units (Key Developments).
  • Management reports that the European ventilation market remains fragmented, providing many interesting M&A opportunities that Lindab aims to pursue (Key Developments).
  • Following a high level of M&A activity in 2024, Lindab is rebuilding its acquisition pipeline and is engaged in several promising discussions with potential targets (Key Developments).
  • Lindab believes it can continue to finance small to medium sized add on acquisitions, typically corresponding to SEK 500 million to SEK 1 billion in annual sales, through its strong cash flow and current profitability (Key Developments).

Valuation Changes

  • The Fair Value Estimate has risen moderately from SEK 195 to SEK 214, reflecting a higher assessed intrinsic value for Lindab International.
  • The Discount Rate has increased slightly from 6.86 percent to 7.04 percent, implying a marginally higher required return and risk assessment.
  • The Revenue Growth Assumption has fallen modestly from 4.71 percent to 4.23 percent per year, indicating slightly more conservative top line expectations.
  • The Net Profit Margin Assumption has decreased slightly from 8.73 percent to 8.42 percent, pointing to a modestly lower long term profitability outlook.
  • The Future P/E Multiple has risen significantly from 13.9x to 16.3x, suggesting a higher expected valuation level on projected earnings.

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Disclaimer

AnalystLowTarget 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 AnalystLowTarget 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 AnalystLowTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.