Analysts have modestly increased their fair value estimate for Hexagon to SEK 116.68, up from SEK 115.10. They cite improved revenue growth forecasts but also note limited near-term upside based on recent valuation assessments.
Analyst Commentary
Bullish Takeaways
- Bullish analysts are acknowledging steady revenue growth improvements, reflected in higher fair value and price targets.
- Incremental increases in price targets suggest confidence in Hexagon's ongoing operational execution and resilience.
- The company is viewed as continuing to deliver solid fundamental performance despite sector headwinds.
Bearish Takeaways
- Some analysts have moderated their outlook, shifting to Hold ratings due to perceived limited upside at current valuation levels.
- Valuation concerns remain prominent, with the share price seen as near fair value even after revenue upgrades.
- There is a cautious view on near-term returns, with analysts emphasizing the need for further catalysts to drive meaningful outperformance.
What's in the News
- Hexagon hosted its Analyst/Investor Day and provided updates on the company's strategic direction and growth outlook (Key Developments).
- Norbert Hanke has been announced as the incoming interim Chief Financial Officer, succeeding David Mills effective 29 August 2025. Mills will remain as Financial Advisor to Hexagon until February 2026 (Key Developments).
Valuation Changes
- Fair Value Estimate has risen slightly from SEK 115.10 to SEK 116.68, reflecting updated growth assumptions.
- Discount Rate has increased fractionally, moving from 6.58 percent to 6.63 percent.
- Revenue Growth Forecast has improved from 5.03 percent to 6.03 percent, indicating higher expected sales momentum.
- Net Profit Margin is up modestly, from 20.62 percent to 20.91 percent.
- Future P/E Ratio has fallen significantly, from 287.80x to 25.63x, which suggests reduced valuation pressure.
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AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.