Nordea raises the target price for bathroom company Svedbergs to SEK 82 from SEK 81 and reiterates its Buy recommendation. This is stated in an analysis ahead of the company’s third-quarter report.
Nordea assesses that Svedbergs’ increased geographical diversification and significant exposure to the renovation market reduce sensitivity to the economic cycle. The bank expects average annual growth in adjusted EBITA of approximately 13 percent during 2025-2027 and sees further potential through acquisitions.
Expectations for the Q3 report are that Svedbergs will post organic growth of 0.7 percent and an adjusted EBITA margin of 14.4 percent, a decrease of 0.6 percentage points compared with last year, reflecting the dilution effect from UBC as well as temporary logistics costs in the UK.
Svedbergs will release its report on 22 October.
