Nordea upgrades its recommendation for packaging company Billerud to Buy from Hold with a price target of SEK 100, while SB1 Markets reiterates Buy and raises its price target to SEK 116 from SEK 114. This is evident from separate analyses.
Nordea highlights that it has become increasingly clear that the company is in a favorable position against the backdrop of rising input costs outside the Nordic region, which is forcing European competitors to raise prices while Billerud’s own costs have fallen (wood and fixed costs).
“Operations in Europe were the highlight during the third quarter, and given the rising energy costs in Europe, we believe it is highly likely that there will be further price increases during the fourth quarter, which will affect earnings in 2027”, Nordea writes.
The bank raises its EBITDA forecasts for 2026–2028 by 2–10 percent and considers the stock to remain undervalued.
SB1 Markets points to improved predictability in earnings development as the main reason for the higher price target.
“We therefore believe that Billerud is well positioned to defend or raise its current profit margins during Q4 and going forward”, the research house adds.
SB1 expects Billerud’s EBITDA for 2027 and 2028 to exceed previous market consensus by 14 and 13 percent, respectively. Over a three-year horizon, SB1 Markets sees a potential share value of SEK 150, corresponding to upside of 80 percent.
In addition to SB1, Billerud has also received higher price targets from DNB Carnegie, SEB and ABG Sundal Collier, while Pareto Securities has chosen to move in the opposite direction with a lower price target. Most of the research houses, including Pareto, reiterate Buy.
