EFN Finansmagasinet recommends buying engineering company Sandvik and estimates that the stock has 20–25 percent upside over a 12-month horizon.
Analyst Gabriel Isskander highlights strong order intake, rising margins and a strong balance sheet. At the same time, the stock has fallen nearly 20 percent from its peak levels.
EFN expects adjusted EBITA of SEK 32 billion in 2026 and SEK 35.3 billion in 2027. For 2027, the stock is valued at around 13 times EV/EBITA.
As a risk, EFN points to Sandvik’s sensitivity to the economic cycle and the fact that the mining market and profitability are at high levels. A weaker industrial cycle or lower commodity prices could therefore weigh on earnings.
