On Friday, Jefferies upgraded Husqvarna AB (HUSQB:SS) stock from Hold to Buy, setting a new price target of SEK105, up from the previous SEK80. The firm highlighted Husqvarna's ongoing transformational journey which positions the company to better capitalize on global market trends.
The upgrade is based on the belief that Husqvarna will experience an accelerated business momentum in the short term, particularly as the industry's destocking efforts have concluded. This shift is expected to enhance Husqvarna's market opportunities and financial performance.
Jefferies' revised price target of SEK105 is derived from a discounted cash flow (DCF) analysis. This new target suggests an enterprise value to earnings before interest and taxes (EV/EBIT) multiple of 13.5 times for the fiscal year 2025 estimates.
The financial institution's optimistic outlook for Husqvarna is rooted in the company's strategic initiatives and the easing of previous market pressures. With the upgraded rating and increased price target, Jefferies signals its confidence in Husqvarna's potential for growth and value creation.
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