SB1 Markets reiterates Buy for forest products company SCA and raises its price target to SEK 148 from SEK 146. Nordea also reiterates Buy and raises its price target to SEK 152 from SEK 141 following the Q3 report.
SB1 points out that kraftliner prices rose by 10 percent and that pulp deliveries reached record levels. The bank expects EBITDA to increase from SEK 5.8 billion in 2026 to SEK 8.3 billion in 2027. The forecast for 2027 is thus 17 percent above market expectations.
Nordea also sees a recovery in the industrial operations, driven by higher packaging prices and lower wood costs. The bank raises its EBITDA forecasts by 5 percent for 2026-2028 and considers that the market undervalues both the forest assets and the earnings potential.
SB1 sees scope for share buybacks in 2027. The bank’s price target corresponds to a P/E of 19 based on the 2028 forecast, compared with a historical five-year average of 23.
