SEB repeats its Buy rating on residential developer JM and marginally lowers its price target to SEK 149 from SEK 150. The bank believes the stock has limited downside and that little is needed for a revaluation.
Ahead of the third quarter, SEB expects revenue to increase 19 percent and EBIT 78 percent year-over-year, against weak comparative figures. Margins are nevertheless expected to remain under pressure. JM has announced 295 production starts during the quarter, and the company’s guidance points, according to the bank, to a stronger fourth quarter.
SEB cuts its forecast for earnings per share in 2026 by 8 percent, while the forecasts for 2027-2028 are largely left unchanged. In its scenario for 2028, the bank expects an EBIT margin of 7.6 percent.
