Analysts have raised their price target on EQT AB from SEK 367.61 to SEK 373.79. This update reflects changes to revenue growth expectations and recent positive research from major investment firms.
Analyst Commentary
Recent updates from street research highlight a mix of optimism and caution among industry analysts regarding EQT AB's future performance and valuation.
Bullish Takeaways- Bullish analysts have increased their price targets for EQT AB, reflecting confidence in the company's improving revenue growth prospects.
- The upward adjustments suggest positive sentiment around EQT AB's ability to execute its growth strategy effectively in the coming quarters.
- Elevated price targets, including a notable upgrade to SEK 380 by a leading global bank, indicate belief in further upside potential for the stock.
- Research teams view the company's latest performance and strategic moves as supportive of higher long-term valuation multiples.
- Despite target price increases, several analysts have maintained a Neutral stance on the shares. They point to concerns about fully realized gains or potential execution risks ahead.
- Cautious analysts note that recent upgrades are relatively modest. This suggests that some risks around market volatility and sector dynamics remain.
- Concerns persist regarding the pace of revenue growth and whether EQT AB can consistently outperform in a competitive landscape.
What's in the News
- EQT is considering a potential U.S. IPO of its waste management business, Reworld, with the aim of raising at least $1 billion; discussions are ongoing and a listing could happen as soon as next year (Bloomberg).
- The company has completed the repurchase of 5,535,521 shares, representing 0.47% of outstanding stock for SEK 1,861.33 million, under the buyback program announced on May 27, 2025.
- EQT has initiated the sale of its Nordic digital infrastructure arm, GlobalConnect, at a potential EUR 8 billion valuation and is moving forward with a full divestment strategy.
- The launch of the EQT Nexus ELTIF Private Equity fund expands EQT's product suite and offers broader access to European private markets for non-professional investors.
- EQT is partnering with Trade Republic to provide retail investors access to private markets, allowing investments from as little as 1 euro and enhanced liquidity through monthly selling opportunities.
Valuation Changes
- Fair Value: Increased from SEK 367.61 to SEK 373.79, reflecting a minor upward revision in consensus valuation.
- Discount Rate: Decreased slightly from 6.27% to 6.24%, indicating a marginal reduction in risk premium assumptions.
- Revenue Growth: Projected growth has risen modestly from 14.09% to 14.49%.
- Net Profit Margin: Edged down a fraction from 50.89% to 50.71%.
- Future P/E: Increased marginally from 22.94x to 23.16x, suggesting a slight expansion in forward earnings multiples.
Disclaimer
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