Update shared on 20 Oct 2025
Fair value Increased 10%M&A Readiness And Cleantech Advancements Will Expand Future Horizons
Analysts have raised their price target for NCC from $200 to $220. They cite higher expected revenue growth and improved profit margins in their updated projections.
What's in the News
- NCC has secured a SEK 1.7 billion contract to construct Building C at Oulu University Hospital in Finland. The project will focus on specialized healthcare and teaching facilities, with completion expected by mid-2029 (Client Announcements).
- NCC won more than SEK 7.5 billion in contracts to build over 450 kilometers of power lines in Västra Götaland, Sweden. These projects will support regional electrification and industrial growth (Client Announcements).
- NCC will refurbish and redevelop 444 apartments in Kolding, Denmark, modernizing residential blocks and enhancing social spaces. This SEK 520 million project is scheduled for completion by early 2029 (Client Announcements).
- NCC announced plans to build a new correctional facility in Va, Kristianstad, Sweden. The SEK 650 million project is set to be completed in 2026 (Client Announcements).
- M&A discussions are ongoing for NCC's industry business, with suitors such as CRH plc and Heidelberg Materials AG. The unit is potentially valued near $1 billion in a possible divestment (M&A Rumors and Discussions).
Valuation Changes
- Consensus Analyst Price Target has increased from SEK 200 to SEK 220. This change reflects higher expected returns.
- The Discount Rate has decreased slightly from 6.88% to 6.78%, indicating a modest reduction in perceived risk.
- Revenue Growth projections have risen from 0.73% to 0.76%.
- Net Profit Margin expectations have improved marginally from 2.46% to 2.49%.
- The Future P/E ratio has moved up from 15.6x to 16.9x, suggesting a higher valuation of earnings.
Disclaimer
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