Nordea repeats its Buy rating for hygiene products company Essity and raises its target price to SEK 315 from SEK 300.
The bank sees potential upside of approximately 50 percent by 2029, including dividends, in a scenario where consumer tissue is divested for SEK 31 billion. This would enable share buybacks of approximately SEK 21 billion and contribute to a higher valuation.
Nordea also expects additional cost savings of SEK 1.5 billion and positive effects from acquisitions. Essity trades at a discount to global consumer goods companies.
