Update shared on 24 Nov 2025
Analysts have lowered their average price target for Hemnet Group, reflecting a cautious outlook after recent adjustments by major banks, with targets dropping from the SEK 256 to 370 range down to SEK 245 to 345, citing a more moderate growth profile and margin outlook.
Analyst Commentary
Recent research updates reflect a nuanced view among analysts regarding Hemnet Group's performance outlook and valuation.
Bullish Takeaways
- Despite a series of price target reductions, some analysts continue to support Neutral or Equal Weight ratings. This suggests a belief in Hemnet Group's underlying market position and business model.
- The company's strong digital platform is viewed as a competitive advantage. This is seen as underpinning resilience in challenging market conditions.
- Valuations, although lowered, still recognize Hemnet Group's potential for stabilized margin growth over the medium term.
- Analysts note that Hemnet maintains a significant share of Sweden's residential property listing market. This supports expectations for ongoing cash flow generation.
Bearish Takeaways
- Multiple downward price target revisions demonstrate concerns about a more moderate growth trajectory and pressure on profit margins going forward.
- Cautious sentiment is reinforced by expectations of slower execution on growth initiatives and tempered revenue expansion amid broad property market uncertainty.
- Analysts highlight that the recent adjustments come in the context of sustained macroeconomic headwinds, which could weigh on transaction volumes and listing activity.
- Overall, there is increased skepticism regarding the pace at which Hemnet Group can improve operational leverage and return to higher growth rates.
What's in the News
- Hemnet Group completed its announced share buyback program by repurchasing a total of 812,500 shares since May 2025. This amounts to 0.85% of the company for SEK 223.2 million (Key Developments).
- Between July 1, 2025 and September 30, 2025, the company repurchased 560,000 shares for SEK 148.6 million, representing 0.59% of outstanding shares (Key Developments).
Valuation Changes
- The Fair Value Estimate remained unchanged at SEK 294.4.
- The Discount Rate increased slightly from 6.31% to 6.32%.
- The Revenue Growth projection held steady at approximately 18.4%.
- The Net Profit Margin experienced a marginal decline from 42.49% to 42.49%.
- The future Price-to-Earnings (P/E) ratio rose moderately from 29.25x to 29.58x.
Disclaimer
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