Update shared on 12 Dec 2025
Fair value Decreased 3.36%Analysts have trimmed their price target on HMS Networks by SEK 20 to SEK 575, reflecting slightly more cautious assumptions on revenue growth and profit margins, while also applying a marginally lower discount rate and a modestly higher future P E multiple.
What's in the News
- HMS Networks plans to actively pursue further acquisitions, aiming to drive roughly half of its future growth through M&A and half through organic expansion (company presentation).
- Management highlighted a track record of about a dozen acquisitions over the past decade, with mixed but increasingly successful outcomes guiding the current acquisition strategy (company presentation).
- The company is sharpening its Win Grow Keep strategy, putting more resources into sales and marketing to win new customers and increase wallet share with existing clients (company presentation).
- Leadership emphasized the importance of integrating acquired businesses so that the group operates and feels like a single, unified company despite ongoing deal activity (company presentation).
Valuation Changes
- Fair Value: Trimmed slightly from SEK 595 to SEK 575, reflecting a modestly more cautious overall valuation.
- Discount Rate: Lowered marginally from 6.41 percent to 6.32 percent, implying a slightly reduced required return.
- Revenue Growth: Reduced from 16.57 percent to 14.74 percent, indicating a moderate softening in medium term growth expectations.
- Net Profit Margin: Cut from 21.14 percent to 19.61 percent, signalling slightly lower anticipated profitability levels.
- Future P E: Raised from 32.1x to 34.0x, suggesting a modestly higher valuation multiple applied to future earnings.
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