Update shared on 26 Nov 2025
Fair value Decreased 4.65%The analyst price target for Evolution has been reduced significantly, dropping from SEK 1,350 to SEK 630. Analysts cite uncertainty stemming from ongoing legal disputes and tempered growth expectations as contributing factors.
Analyst Commentary
Recent updates from equity research analysts reflect a shift in sentiment around Evolution AB, with both bullish and bearish factors shaping the company's outlook. Analysts acknowledge ongoing legal challenges and moderating growth, resulting in revised price targets and ratings.
Bullish Takeaways- Bullish analysts have recognized Evolution's resilient fundamentals. Recent price target increases reflect confidence in the company's market position.
- Revised targets above SEK 800 suggest that some expect Evolution to maintain solid execution and competitive strengths despite headwinds.
- Rating reaffirmations from select firms indicate continued belief in medium-term growth prospects and operational stability.
- Bearish analysts have highlighted mounting uncertainty from ongoing legal disputes, notably a significant case in the U.S., as a major risk to future performance.
- Several have downgraded their ratings and substantially lowered price targets, pointing to a wide range of potential lawsuit outcomes and greater risk sensitivity in valuations.
- Expectations of structurally lower growth algorithms in coming years have prompted cautious reassessments of consensus earnings forecasts.
- Slower projected growth has led to concerns about whether Evolution’s previous premium valuation can be justified long term.
What's in the News
- Pareto has downgraded Evolution AB to Hold from Buy and assigned a new price target of SEK 720 (Pareto).
Valuation Changes
- The Fair Value Estimate has decreased moderately from SEK 814.45 to SEK 776.59.
- The Discount Rate has declined slightly, moving from 6.23% to 6.19%.
- The Revenue Growth projection has edged down from 5.03% to 4.98%.
- The Net Profit Margin estimate is virtually unchanged, trimming marginally from 48.26% to 48.23%.
- The Future P/E Ratio forecast has fallen slightly from 12.68x to 12.41x.
Disclaimer
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