Stock Analysis

A Fresh Look at Husqvarna (OM:HUSQ B) Valuation Following Launch of AI-Powered Robotic Lawnmowers

Husqvarna (OM:HUSQ B) has just rolled out seven new robotic lawnmower models with AI-powered navigation and camera technology. These are designed for efficient, quiet operation even at night. The lineup targets both residential and professional users seeking smart, low-carbon lawn care solutions.

See our latest analysis for Husqvarna.

Husqvarna’s drive to lead smart lawn care tech comes as its share price remains under pressure, with a 1-year total shareholder return of -23.9% and a 5-year total shareholder return of -38.6%. While momentum has recently picked up with a 4.1% 7-day share price return, the longer-term trend still suggests investors are looking for clearer proof that innovation is translating into lasting value.

If innovation in outdoor equipment gets you thinking more broadly, this is a great moment to discover fast growing stocks with high insider ownership.

With Husqvarna showing strong innovation but lagging on long-term returns, and trading nearly 22 percent below analysts’ targets, is this a buying opportunity for investors, or is the market already pricing in future growth?

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Most Popular Narrative: 17.3% Undervalued

With Husqvarna’s last close at SEK50.88 and a narrative fair value placed at SEK61.50, the potential upside is significant. This sets up a compelling question about how Husqvarna’s strategy and execution might fuel future growth.

The accelerating transition towards battery-powered, electric, and especially robotic outdoor equipment is expanding Husqvarna's addressable market and supporting double-digit sales growth in robotics and electrified categories. This trend is expected to drive above-average revenue growth and higher net margins as a greater share of sales comes from higher-ASP, lower-servicing products.

Read the complete narrative.

Curious about what’s driving this bullish narrative? The fair value relies on bolder earnings forecasts and profit margin improvements than you might expect from a machinery giant. Find out which aggressive underlying assumptions and strategic moves underpin the consensus price target. Are analysts expecting Husqvarna to outgrow its past or just keep up with competitors?

Result: Fair Value of $61.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, pricing pressure from low-cost rivals and persistent weak demand in North America could challenge Husqvarna’s ambitions and place pressure on its margin outlook.

Find out about the key risks to this Husqvarna narrative.

Build Your Own Husqvarna Narrative

If you see Husqvarna’s outlook differently or want to dive into the numbers yourself, there’s nothing stopping you from crafting a personal view in just a few minutes. Do it your way

A great starting point for your Husqvarna research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Valuation is complex, but we're here to simplify it.

Discover if Husqvarna might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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