Update shared on 06 Nov 2025
Fair value Decreased 25%Analysts have adjusted their price target for Netel Holding downward from SEK 6 to SEK 4.5. They cite slightly weaker projected revenue growth, which is partially offset by an improved profit margin outlook and a lower projected future P/E ratio.
What's in the News
- Netel has entered into an agreement with Ellevio for the reconstruction and refurbishment of a distribution station on Lidingo, northeast of Stockholm, in a deal valued at approximately SEK 50 million. The project will start in autumn 2025 and is scheduled to finish in autumn 2028 (Client Announcements).
- Netel Holding AB (publ) reaffirmed its earnings guidance for 2025, projecting full-year revenue of around SEK 3 billion as of 1 October (Corporate Guidance).
- Netel provided guidance that 2025 revenue is expected to decrease by roughly 9% compared to 2024, deviating from its target of 3 to 5 percent annual organic growth. Other operations are forecasted to achieve an adjusted EBITA margin of approximately 4 to 5 percent for 2025 (Corporate Guidance).
Valuation Changes
- Consensus Analyst Price Target has decreased from SEK 6 to SEK 4.5, indicating a notable downward revision in perceived fair value.
- Discount Rate has risen slightly from 9.97% to 10.12%, reflecting a marginally higher required return by investors.
- Revenue Growth forecasts have improved moderately, with the expected decline narrowing from -1.15% to -0.73%.
- Net Profit Margin outlook has strengthened from 2.79% to 4.06%, signaling an anticipated improvement in profitability.
- Future P/E ratio is projected to fall significantly from 4.39x to 2.34x, which suggests lower expected valuation multiples.
Disclaimer
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