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Narrative Update: EQT Analyst Price Target

The analyst consensus price target for EQT has increased from SEK 362.93 to SEK 367.61. Analysts cite improved profit margins and recent target hikes from several firms as key drivers for their upward revisions.

Analyst Commentary

Bullish Takeaways

• Bullish analysts are raising their price targets in response to improved performance metrics. This reflects growing confidence in EQT's growth trajectory.
• Upgrades to Buy ratings signal increased optimism regarding share price appreciation, supported by recent target moves nearing the SEK 370-380 range.
• Several firms cite enhanced profit margins and attractive valuation levels as reasons for their constructive outlook on EQT.
• The strong sequence of upward revisions suggests analysts see ongoing business momentum and effective execution of management's strategy.

Bearish Takeaways

• Some major firms, including JPMorgan, maintain more neutral or equal weight ratings. Despite incremental target increases, this indicates lingering caution among segments of the market.
• Bearish analysts point to potential execution risks associated with rapid growth and integration of new assets, which could impact valuation multiples.
• While target price hikes are evident, there remains a divergence in views on the pace and sustainability of EQT's earnings recovery.
• Cautious perspectives also reference possible headwinds from broader market volatility or regulatory pressures that could limit upside in the near term.

What's in the News

• EQT is considering a U.S. initial public offering of its waste management business Reworld, which could raise at least $1 billion. The company is working with Goldman Sachs, JPMorgan, and Royal Bank of Canada, with a potential listing as early as next year (Bloomberg).
• EQT introduced a European Long-Term Investment Fund (ELTIF) structure to its Nexus evergreen product suite. This expands private market access for non-professional individual investors across the EU and EEA, with third party subscriptions starting in November 2025 (Key Developments).
• Trade Republic has partnered with EQT and Apollo to allow customers to invest in private markets, offering fractional investing with a 1% bonus on investments for the first 30 days (Key Developments).
• EQT completed the buyback of 5,535,521 shares, representing 0.47% of its capital, for SEK 1,861.33 million under the program announced in May 2025 (Key Developments).

Valuation Changes

• Fair Value Estimate: Increased slightly from SEK 362.93 to SEK 367.61, reflecting a modest rise in projected equity worth.
• Discount Rate: Rose marginally from 6.25% to 6.27%, indicating a slightly higher required rate of return.
• Revenue Growth: Decreased slightly from 14.25% to 14.09%, suggesting a minor adjustment to future sales expansion expectations.
• Net Profit Margin: Improved from 46.99% to 50.89%, highlighting enhanced profitability projections.
• Future P/E Ratio: Decreased significantly from 267.3x to 22.9x, pointing to a substantial re-rating of future earnings valuation.