Update shared on 09 Nov 2025
Fair value Decreased 0.34%The consensus analyst price target for Evolution AB has edged lower, declining by SEK 2.82 to reflect evolving views on future growth prospects and profit margins. Some downgrades cite a structurally slower growth outlook.
Analyst Commentary
Bullish Takeaways- Some analysts have raised their price targets for Evolution AB, reflecting confidence in the company's long-term growth potential despite current market headwinds.
- Buy ratings have been reiterated by select bullish analysts, indicating ongoing conviction in Evolution's ability to execute on its strategic initiatives.
- Recent target price increases suggest that upside remains if Evolution can maintain or grow its profit margins and deliver on guidance.
- The valuation remains attractive to those who see the current consensus as underestimating Evolution's revenue opportunities and market positioning.
- Several downgrades recently cite concerns about a structurally slower growth outlook for Evolution over the coming years, which could pressure future earnings.
- Cautious analysts point to signs that market expectations have not fully adjusted to a moderated pace of profit expansion or business maturation.
- Some price target cuts reflect skepticism over whether Evolution can sustain its historic growth rates given increasing competition and changing market dynamics.
- Lowered ratings suggest that, while execution remains strong, current valuation may already price in the company's key achievements. This raises the bar for future outperformance.
What's in the News
- Pareto downgraded Evolution AB to Hold from Buy and set a new price target of SEK 720 (Pareto).
Valuation Changes
- The Fair Value Estimate has edged down slightly, from SEK 817.27 to SEK 814.45.
- The Discount Rate has decreased marginally, from 6.29% to 6.23%.
- The Revenue Growth expectation has softened, moving from 5.08% to 5.03%.
- The Net Profit Margin projection has increased, from 47.01% to 48.26%.
- The Future P/E has declined, from 13.18x to 12.68x.
Disclaimer
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