Update shared on03 Oct 2025
Fair value Decreased 3.21%Analysts have revised Trelleborg's fair value downward from SEK 389.67 to SEK 377.14. They cite softer revenue growth forecasts and a slightly higher discount rate as key factors behind the adjustment.
Analyst Commentary
Bullish Takeaways
- Bullish analysts have raised their price targets, indicating confidence in the company’s medium-term prospects despite near-term headwinds.
- Expectations remain positive regarding Trelleborg’s operational execution and ability to maintain stable margins in the current market environment.
- Support for a Neutral rating suggests analysts believe the company’s valuation is fairly balanced against its risk profile. This implies downside risk may be limited at current levels.
- Increasing the price target, even modestly, reflects optimism that Trelleborg can navigate softer revenue growth and still generate value for shareholders.
Bearish Takeaways
- Bearish analysts remain cautious due to muted revenue growth forecasts, which could limit valuation expansion in the short term.
- The adjustment to a slightly higher discount rate suggests lingering concerns about macroeconomic or market risks impacting Trelleborg’s performance.
- Retention of a Neutral stance reflects a lack of strong conviction in the company’s ability to outperform broader market expectations at this time.
What's in the News
- Trelleborg AB initiated a major share repurchase program on July 28, 2025, authorizing the company to buy back up to 12.4 million class B shares (4.62% of issued share capital) until the next AGM in 2026. (Key Developments)
- On July 28, 2025, the company announced a new tranche of its buyback program, targeting up to 7.5 million shares or 7.83% of its capital for SEK 1.5 billion, effective until April 22, 2026. (Key Developments)
- Between April 1 and April 24, 2025, Trelleborg completed the repurchase of 690,577 shares for SEK 226.85 million as part of its ongoing capital management initiatives. (Key Developments)
- From April 24 to June 30, 2025, the company repurchased an additional 994,311 shares, spending SEK 350.15 million under its expanded buyback program. (Key Developments)
Valuation Changes
- Fair Value has decreased from SEK 389.67 to SEK 377.14, reflecting a reduction of approximately 3.2%.
- Discount Rate has risen slightly from 6.24% to 6.35%, suggesting a marginal increase in perceived risk or cost of capital.
- Revenue Growth forecasts have fallen from 3.35% to 2.85%, indicating more subdued expectations for top-line expansion.
- Net Profit Margin is nearly unchanged, moving marginally from 12.73% to 12.73%.
- Future P/E ratio has decreased modestly from 19.67x to 19.48x, signaling a small downward adjustment in forward valuation multiples.
Disclaimer
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