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NETEL: Margin Outlook And New Contract Will Support Measured 2025 Confidence

Analysts Revise Netel Holding Price Target Following Guidance and Outlook for Lower Growth

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NETEL
AnalystConsensusTarget
Not Invested
Published 08 Feb 2025

Update shared on 06 Dec 2025

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-2.7%

Analysts have modestly raised their price target on Netel Holding, increasing it by SEK 4.50 per share. They have reaffirmed their assumptions on discount rates, revenue growth, profit margins, and valuation multiples.

What's in the News

  • Netel signed an agreement with Ellevio to reconstruct and refurbish a distribution station on Lidingo near Stockholm, a project valued at approximately SEK 50 million and running from autumn 2025 to autumn 2028 (client announcement).
  • The company reaffirmed its earnings guidance for 2025, maintaining an expectation of approximately SEK 3 billion in full year revenue (corporate guidance).
  • Netel estimates 2025 revenue at around SEK 3 billion with an adjusted EBITA margin of 1.5 to 2%, implying about a 9% revenue decline versus 2024 and below its 3 to 5% annual organic growth target. Most operations are still projected to deliver a 4 to 5% adjusted EBITA margin (corporate guidance).

Valuation Changes

  • Fair Value Estimate unchanged at SEK 4.50 per share, indicating no reassessment of the company’s intrinsic value.
  • Discount Rate stable at 10.12%, reflecting no change in the perceived risk profile or required return.
  • Revenue Growth revised marginally higher from approximately -0.73% to -0.73%, a negligible adjustment with no meaningful impact on the outlook.
  • Net Profit Margin increased very slightly from about 4.06% to 4.06%, a technical refinement rather than a fundamental shift in profitability expectations.
  • Future P/E Multiple effectively unchanged at around 2.34x, signaling a stable valuation framework for anticipated earnings.

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