Update shared on 21 Nov 2025
Narrative Update on Skanska: Analyst Price Target Change
Analysts have raised Skanska's price target to SEK 270 from SEK 252, citing improved revenue growth and profit margin forecasts.
Analyst Commentary
Bullish Takeaways
- Bullish analysts highlight that the improved price target reflects confidence in Skanska's stronger revenue growth trajectory.
- There is a positive expectation for profit margin expansion, which is anticipated to enhance Skanska's overall financial performance.
- The revised valuation suggests management's strategic execution is yielding sustainable improvements in core operations.
- Ongoing project pipelines and order flows are seen as supportive of stable, long-term growth prospects.
Bearish Takeaways
- Some analysts maintain a cautious stance, with an Equal Weight rating suggesting Skanska may be fairly valued at the current target.
- Execution risks remain, particularly if economic conditions become less favorable for the construction sector.
- Margins, while expected to improve, could face pressure from rising input costs or project delays.
What's in the News
- Skanska signed a contract to upgrade a 12-kilometer section of the Vt 12 highway in Iitti, Finland, valued at EUR 60 million. The project aims to enhance safety and traffic flow and will commence construction in early 2026. (Key Developments)
- The company is investing approximately SEK 450 million in the Angsklockan residential condominium project in Jarvastaden, Solna, Sweden, which will feature sustainability measures such as solar panels and energy-efficient materials. Completion is expected in early 2028. (Key Developments)
- Skanska will construct a replacement for Lake Weir Middle School in Ocala, Florida, USA, in a contract worth USD 63 million. The project is expected to be finished by June 2027 to support growing student numbers. (Key Developments)
- The company announced a EUR 74 million investment in the fifth phase of the Nowy Rynek office complex in Poznan, Poland. The site is designed as the first Polish office building with net zero CO2 emissions during operation, with completion scheduled for late 2027. (Key Developments)
- Skanska has secured a contract for a new 9.6-kilometer motorway section near Zilina, Slovakia, valued at EUR 261 million. The project aims to improve international transit and local community safety, with construction beginning around late 2025. (Key Developments)
Valuation Changes
- Fair Value remains unchanged at SEK 275, reflecting analyst consensus stability on intrinsic worth.
- The Discount Rate has risen slightly to 6.82 percent from 6.65 percent, implying modestly higher expectations for risk or capital costs.
- Revenue Growth forecasts increased to 4.98 percent from 4.11 percent, pointing to improved top-line expectations.
- Net Profit Margin is projected to edge up to 4.40 percent compared to the previous 4.24 percent, reinforcing a positive outlook on operational profitability.
- The future P/E ratio has decreased to 15.08x from 15.69x, suggesting an improved earnings outlook or a more attractive valuation multiple.
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.