HEXA B: Rating Changes And Execution Will Steer Near-Term Share Performance

Hexagon's analyst fair value target experienced a slight decrease to SEK 121.85 from SEK 121.94, as analysts cited upward revenue growth adjustments, offset by modestly lower profit margin expectations and a marginally reduced discount rate.

Analyst Commentary

Recent Street Research underscores a mix of optimism and caution surrounding Hexagon, as reflected in recent target price changes and rating adjustments by major investment banks and brokerages.

• Bullish analysts have upwardly revised price targets, citing expectations for revenue growth and the company’s ability to capitalize on new market opportunities.
• An upgrade to Outperform status reflects confidence in Hexagon’s execution capabilities and a favorable outlook on long-term growth prospects.
• Rising price targets from multiple sources highlight positive momentum. Some target prices have been set significantly above the current share price, indicating scope for further appreciation.

• Bearish analysts have expressed concern about limited upside at the current valuation levels. Some have downgraded ratings to Hold from Buy.
• Caution was noted regarding profit margin pressures, which could affect the company’s ability to meet elevated expectations embedded in revised valuations.
• Some analysts maintained a neutral or hold stance, suggesting uncertainties around the sustainability of growth and execution in the context of current market dynamics.

What's in the News

• Hexagon's Asset Lifecycle Intelligence division and Management Controls Inc. (MCi) launched the EcoSys + myTrack Connector, an integration providing real-time contractor data for enhanced project performance insights and improved forecasting. (Client Announcements)
• An Analyst/Investor Day was recently held by Hexagon AB (publ), offering updates and insights for stakeholders. (Analyst/Investor Day)
• Norbert Hanke will succeed David Mills as interim Chief Financial Officer effective 29 August 2025, following Mills' decision to step down for personal reasons. Mills will remain as Financial Advisor until February 2026. (Executive Changes, CFO)

Valuation Changes

• The Fair Value Target has decreased marginally from SEK 121.94 to SEK 121.85.
• The Discount Rate has declined slightly, moving from 6.76 percent to 6.74 percent.
• Revenue Growth Expectations have risen from 5.07 percent to 5.42 percent.
• The Net Profit Margin Forecast has edged down from 21.40 percent to 21.06 percent.
• The Future P/E Ratio has increased modestly, from 26.75x to 26.89x.