WIHL: Core Leasing And Asset Moves Will Support Future Resilience

Analysts have trimmed their price target on Wihlborgs Fastigheter to SEK 105 from SEK 120, reflecting more conservative estimates and a view that the shares now fairly reflect valuation.

Analyst Commentary

Analysts characterize the new SEK 105 target as more in line with Wihlborgs Fastigheter's near term earnings power and balance sheet profile, reflecting a reset of expectations rather than a fundamental shift in the long term business case.

Bullish Takeaways

• Bullish analysts still see the company as fairly valued at the new target, suggesting downside risk is more limited after the recent share performance.
• The revised estimates incorporate a more conservative macro and rate backdrop, which some view as de risking the numbers and making future estimate beats more achievable.
• Operational execution in the core property portfolio is seen as resilient, supporting the view that cash flow generation can underpin the current valuation.
• The price target cut is framed as a calibration to market conditions rather than a structural downgrade of the company’s long term growth potential.

Bearish Takeaways

• Bearish analysts argue that the previous valuation multiple was too demanding relative to slower expected rental growth and higher financing costs.
• Lowered earnings estimates signal a more cautious stance on Wihlborgs Fastigheter's ability to drive margin expansion and value accretive development in the current environment.
• The move from a more positive stance to a neutral one reflects concern that upside catalysts are limited in the short to medium term.
• Some see the new target as leaving limited valuation headroom if execution stumbles or the property market weakens further.

What's in the News

• Nowaste Logistics signs a three year lease for 6,200 sqm at Atforadlingen 11 in Hamncity, southern Helsingborg, reinforcing Wihlborgs' position in a key logistics hub ahead of the planned new container port (Key Developments).
• Capio Hjärnhälsan opens a new 1,100 sqm psychiatric clinic at Drottninggatan 7 in central Helsingborg under a five year lease with Wihlborgs, further diversifying the property’s healthcare tenant mix (Key Developments).
• A new restaurant concept, Bankpalatset, will open in spring 2026 in the historic Svea building at Jarnvagsgatan 7 in central Helsingborg, replacing long standing tenant Heat Helsingborg and aiming to create a new culinary hub (Key Developments).
• NP Innovation will relocate its headquarters and expand production to Wihlborgs' Olsgard 8 property in Fosie, Malmo in December 2025 under a five year, 3,700 sqm lease, supporting growth in the aquaculture segment (Key Developments).
• Wihlborgs acquires industrial property Snarskogen 2 for SEK 26.5 million and signs a ten year lease with Nomo Industrial Automation, while divesting two Hamncity properties for SEK 41.5 million to support Helsingborg’s future port plans (Key Developments).

Valuation Changes

• Fair Value Estimate: unchanged at SEK 109.6, indicating no revision to the modelled intrinsic value despite the lower price target.
• Discount Rate: risen slightly from 9.70 percent to 10.04 percent, implying a marginally higher required return and risk premium.
• Revenue Growth: edged down from 5.83 percent to 5.76 percent, reflecting a modestly more cautious outlook on top line expansion.
• Net Profit Margin: increased slightly from 42.63 percent to 43.00 percent, suggesting a small improvement in expected profitability.
• Future P/E: essentially unchanged, moving marginally from 20.33x to 20.38x, indicating a stable forward valuation multiple.