Update shared on 03 Dec 2025
Narrative update on Fabege analyst price target
Analysts have maintained their SEK 85.98 price target for Fabege, reflecting unchanged assumptions on discount rate, long term revenue growth, profit margin, and future P E multiples, as they continue to see the company fairly valued under current market conditions.
What's in the News
- The board has appointed Bent Oustad, currently CEO of Norwegian Property ASA and a Fabege board member since 2024, as Fabege's new CEO effective December 1, 2025. The appointment highlights his leadership in complex urban development projects (Key Developments).
- Fabege signed a seven year lease with Ruff for around 900 square meters at Drottninggatan 89 in central Stockholm. Ruff will open a modern indoor golf facility with mini golf, simulators, restaurant, and bar by December 2025, with renovation focused on reuse and recycling of materials (Key Developments).
- Fabege is selling 7,800 square meters of development rights in part of the Paradiset 23 property in Stadshagen to Besqab for SEK 200 million in cash. The transfer is expected in early May 2026 and the transaction is expected to have an earnings effect of SEK minus 6 million before tax and SEK 22 million including reversal of deferred tax (Key Developments).
- The sale at Paradiset 23 follows a new local development plan enabling demolition of an existing office block to make way for housing. Fabege continues developing the Paradiset 27 office project, Tegelterassen, with total lettable office space of about 36,000 square meters including potential extensions (Key Developments).
- Fabege and Techarenan are deepening their partnership as Techarenan establishes its headquarters in Arenastaden, reinforcing the district's role as a fast growing business hub. The companies have also confirmed that Techarenan 2026 will again be held at Strawberry Arena on February 11 to 12, attracting global entrepreneurs, investors, and decision makers (Key Developments).
Valuation Changes
- Fair Value Estimate remains unchanged at SEK 85.98, indicating no revision to the overall equity valuation.
- The discount rate is stable at 10.12 percent, suggesting no change in perceived risk profile or required return.
- Revenue growth edged down marginally from 2.74 percent to 2.74 percent, a negligible adjustment with no material impact on the model.
- The net profit margin eased fractionally from 85.31 percent to 85.31 percent, reflecting only rounding-level refinements.
- The future P/E ratio is essentially unchanged at about 11.16 times, signaling a consistent view of Fabege's long-term earnings multiple.
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