NOTE: Reset Multiple And Solid Quarter Will Drive Long-Term Upside

Narrative Update on Analyst Price Target

Analysts have cut their price target on NOTE to $7 from $18, reflecting a reset valuation multiple. They also point to a solid recent quarterly report as support for the updated outlook.

Analyst Commentary

Street research following the latest quarter highlights a mix of optimism around execution and caution around the appropriate valuation framework for NOTE.

Bullish Takeaways

• Bullish analysts view the recent quarterly performance as solid. This reinforces confidence that management can execute against near term growth targets.
• The reduced target is framed as a valuation reset rather than a downgrade in fundamentals. This suggests potential upside if the company sustains its current operating momentum.
• Improved visibility into revenue trends and customer demand is seen as supportive of the new target. The price objective is lower, but still described as constructive.
• Analysts see the updated valuation multiple as more realistic. They argue that it better balances growth potential with execution risk while still implying an attractive return profile.

Bearish Takeaways

• Bearish analysts flag the magnitude of the target cut as evidence that prior expectations embedded an overly aggressive growth and margin trajectory.
• The reset multiple reflects concerns that the market may be less willing to pay a premium for execution that is still early and exposed to macro and competitive pressures.
• Some caution that, despite a solid quarter, NOTE must deliver several consistent reports before investors will fully re rate the shares toward the revised target.
• There is lingering skepticism over how quickly the company can translate its current pipeline and product momentum into durable, high quality growth that would justify even the reduced valuation.

Valuation Changes

• Fair Value: unchanged at SEK 206.0, indicating no adjustment to the intrinsic value estimate.
• Discount Rate: unchanged at 6.69 percent, a minimal change that has limited impact on the valuation framework.
• Revenue Growth: effectively unchanged at around 8.54 percent, suggesting the growth outlook is stable.
• Net Profit Margin: effectively unchanged at about 8.50 percent, indicating no material shift in profitability expectations.
• Future P/E: unchanged at 16.20x, keeping the overall valuation broadly intact.