Update shared on 26 Oct 2025
Fair value Decreased 7.87%Analysts have revised their price target for Evolution AB downward from SEK 887.09 to SEK 817.27. This change reflects expectations for slower revenue growth and a slight dip in profit margin based on recent sector research.
Analyst Commentary
Analyst opinions on Evolution AB remain mixed following recent sector updates. The company's valuation, execution capabilities, and future growth prospects have all been key focuses for both bullish and bearish commentators.
Bullish Takeaways- Bullish analysts have highlighted recent upward adjustments in price targets, reinforcing confidence in Evolution AB's execution and ability to deliver value despite sector headwinds.
- Continued Buy ratings from some institutions suggest that long-term growth prospects remain intact. Revenue potential is seen as resilient even in a moderating growth environment.
- Modest increases in target prices, although cautious, point to expectations for Evolution AB to weather near-term challenges and maintain competitive positioning within its sector.
- A focus on stable profit margins underscores analysts' belief in effective cost management and operational efficiency, supporting a positive view on future earnings potential.
- Bearish analysts have issued downgrades citing concerns about slowing revenue growth. This signals that the company's near-term growth algorithm may not align with previous consensus estimates.
- Some price targets have been notably reduced, reflecting increased caution over margin compression and possible competitive pressures.
- The move from Buy or Neutral to more conservative stances such as Hold or Underweight demonstrates greater skepticism around Evolution AB's ability to outperform expectations in the current environment.
What's in the News
- Pareto has downgraded Evolution AB to Hold from Buy and has set a new price target of SEK 720 (Pareto).
Valuation Changes
- Consensus Analyst Price Target: Lowered from SEK 887.09 to SEK 817.27, reflecting a notable decrease in fair value expectations.
- Discount Rate: Increased marginally from 6.28% to 6.29%, which indicates slightly higher perceived risk or required return.
- Revenue Growth: Decreased from 5.62% to 5.08%, illustrating a modest reduction in anticipated growth rates.
- Net Profit Margin: Declined from 49.37% to 47.01%, pointing to a small contraction in profit expectations.
- Future P/E: Dropped from 13.92x to 13.18x, suggesting that the company is now valued at a lower earnings multiple based on forward estimates.
Disclaimer
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