VIT B: Higher Margins And Rising Dividend Will Support Future Upside

Analysts have revised their price target for Vitec Software Group to SEK 500 from SEK 580. The change reflects updated assumptions for a higher discount rate, more moderate revenue growth, a slightly stronger profit margin, and a lower future P/E multiple.

What’s in the News for Vitec Software Group

• Vitec Software Group has completed its share buyback program announced on October 16, 2025, repurchasing a total of 150,000 shares, representing 0.38% of the company, for SEK 43.9 million. Source: Company buyback tranche updates.
• From January 1, 2026 to March 31, 2026, Vitec repurchased 100,000 shares for SEK 26 million, contributing to the completion of the 150,000 share buyback. Source: Company buyback tranche update.
• Vitec has reviewed its transaction-based revenue in light of updated ESMA guidance and concluded that two subsidiaries, Enova and Vitec BidTheatre, act as agents rather than principals for certain revenue streams, which leads to accounting on a net basis. Source: Company disclosure on ESMA principal versus agent guidance.
• Under the revised accounting policies, Vitec reports that fiscal year 2025 net sales would be SEK 3,327 million instead of SEK 3,633 million, with purchases of goods and services at SEK 350 million instead of SEK 657 million, and higher reported EBITA, operating, and Cash EBIT margins, while profit, cash flow, financial position, and earnings per share remain unchanged. Source: Company accounting policy update.
• The annual general meeting approved a dividend of SEK 3.68 per share for the 2025 financial year, to be paid in four quarterly instalments of SEK 0.92 per share, with record dates on June 25, 2026, September 25, 2026, December 23, 2026, and March 24, 2027, and a total cap of SEK 156,344,798. Source: AGM dividend resolution.

Valuation Changes for Vitec Software Group

• Fair Value: SEK 500, revised from SEK 580, which represents a moderate reduction in the assessed valuation level.
• Discount Rate: 7.84%, updated from 7.52%, indicating a slightly higher required rate of return in the model.
• Revenue Growth: 3.78%, adjusted from 7.36%, reflecting a significantly more cautious growth assumption for SEK revenue.
• Net Profit Margin: 17.79%, compared with 16.59% previously, implying a modestly stronger profitability assumption.
• Future P/E: 32.95x, lowered from 48.57x, indicating a substantially lower valuation multiple applied to Vitec Software Group in the forecast period.