RUSTA: Ongoing Nordic Store Expansion Will Drive Stronger Earnings Ahead

Narrative Update: Rusta Price Target Raised

Analysts have increased their fair value estimate for Rusta from SEK 70 to SEK 75, citing improved confidence in profit margins and future earnings potential. This change comes despite only modest adjustments to growth expectations.

What's in the News

• Rusta has opened two new stores in Lindesberg, Sweden and Aanekoski, Finland, as part of an intense expansion phase across all Nordic store markets. Six new stores are set to open this autumn, increasing the total to 231 locations in Sweden, Norway, Finland, and Germany. The company also plans to open its first city location in Helsinki in 2026. (Company Announcement)
• The company revised its expansion forecast for the next three years, increasing the target to 50 to 80 new stores, up from the previous range of 40 to 60. The number of approved store contracts is at an all-time high. (Company Announcement)
• Rusta announced an annual dividend of SEK 1.45 per share, payable on September 26, 2025. (Company Announcement)
• A buyback program completed the repurchase of 577,333 shares, representing 0.38 percent of shares, for SEK 46 million. No shares were repurchased between May 1, 2025 and July 31, 2025. (Company Announcement)

Valuation Changes

• The Fair Value Estimate has increased from SEK 70 to SEK 75, reflecting a higher appraisal of the company's intrinsic worth.
• The Discount Rate has risen slightly from 7.71 percent to 7.82 percent, indicating a marginally higher required rate of return by investors.
• The Revenue Growth forecast has declined from 8.59 percent to 8.22 percent, signaling a modestly less optimistic outlook for top-line expansion.
• The Net Profit Margin is expected to improve from 5.35 percent to 5.53 percent, suggesting stronger projected profitability.
• The Future P/E has increased from 16.81x to 17.65x, signifying a higher valuation multiple attributed to Rusta’s future earnings.