NCC (OM:NCC B) Valuation Spotlight After Major Hospital and Infrastructure Contract Wins

NCC (OM:NCC B) is making headlines after securing a SEK 1.7 billion contract for Building C at Oulu University Hospital in Finland, along with new projects in Stockholm and for LKAB. These contracts add meaningful momentum to NCC’s business pipeline.

See our latest analysis for NCC.

The recent string of contract wins appears to be stoking investor confidence, with NCC’s share price climbing nearly 30% year-to-date. The past year’s total shareholder return has reached an impressive 37%. Momentum is clearly building, especially considering the remarkable 191% total return over three years.

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Yet with the stock up nearly 30% this year and only a modest discount to analyst price targets, investors must ask whether NCC is still undervalued or if the market has already priced in most of its future growth.

Most Popular Narrative: 3.5% Undervalued

With NCC’s current share price just under the narrative’s SEK220 fair value target, the valuation suggests modest upside remains. But what is driving this optimism?

The company's strong financial position and balance sheet readiness for selective mergers and acquisitions (M&A) can act as a catalyst for future revenue growth and margin expansion. A positive outlook for key contracting segments such as water treatment, energy generation, and infrastructure suggests potential for sustained revenue growth.

Read the complete narrative.

Want to know the growth blueprint behind this price target? High-stakes expansion plans, sustainable tech, and selective M&A moves are woven into this narrative. Which precise assumptions tip the scales in NCC’s favor? Tap in to uncover what’s fueling the market’s expectations.

Result: Fair Value of SEK220 (UNDERVALUED)

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

However, a muted property market or an uptick in competitive pricing could quickly undercut these optimistic forecasts and alter expectations for NCC's future growth.

Find out about the key risks to this NCC narrative.

Build Your Own NCC Narrative

If you have a different perspective or want to dig deeper into the numbers yourself, you can craft your own view in just a few minutes. Do it your way

A great starting point for your NCC research is our analysis highlighting 4 key rewards and 1 important warning sign 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.

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