Update shared on 22 Oct 2025
Fair value Decreased 0.44%Analysts Cite Trough Valuation and Limited Catalysts as Essity Price Targets Edge Lower
Analysts have slightly decreased their price target for Essity, lowering it by approximately SEK 1. This adjustment reflects a continued cautious outlook as recent research points to limited immediate catalysts for the shares.
Analyst Commentary
Recent research opinions on Essity present a balanced view, with both positive aspects and ongoing concerns influencing analyst perspectives on the company's outlook and valuation.
Bullish Takeaways
- Essity shares are currently seen to be trading at a "trough" valuation, which suggests limited downside risk at current levels.
- The strategic shift from tissue products to higher margin segments is anticipated to enhance long-term profitability.
- There is recognition of the company's ability to adjust its business focus in response to changing market dynamics. This could support future growth.
Bearish Takeaways
- Multiple analysts have emphasized the lack of immediate catalysts that could drive the share price higher in the short term.
- Persistent caution exists regarding share performance, as reflected by the recent lowering of price targets by major institutions such as JPMorgan.
- Uncertainty remains around the pace and success of the company's transition toward higher margin segments, which further tempers enthusiasm on near-term execution.
What's in the News
- Goldman Sachs has initiated coverage of Essity with a Neutral rating and a SEK 275 price target. The firm cited a trough valuation and an ongoing shift to higher margin segments, but noted a lack of immediate catalysts to push the stock higher (Goldman Sachs).
Valuation Changes
- Fair Value Estimate has decreased slightly, falling from SEK 282.33 to SEK 281.08.
- Discount Rate remains unchanged at 4.92%.
- Revenue Growth projections remain essentially stable at 1.07%.
- Net Profit Margin shows negligible movement and holds steady around 9.41%.
- Future P/E has edged down modestly from 15.57x to 15.50x.
Disclaimer
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