Northern Lights

Essity (Hold, TP: SEK240.00) - Price-cost challenge still escalating

While the Q1 raw materials cost headwind was worse than expected and not yet offset by price rises, still good execution on cost savings and positive temporary items helped. Given the weak Consumer Staples universe, Essity trading at a 10% premium to Kimberly Clark, and management’s outlook of a worsening raw materials cost headwind and price increases in Q1 having their full effect in H2e, we remain neutral on the stock – we thus reiterate our HOLD and SEK240 target price.

Northern Lights

Green Landscaping Group (Buy, TP: SEK93.00) - Tough Q1 with Swedish bright spot

Green Landscaping reported a light Q1, with mild weather adversely affecting demand for snow removal services. The top line was c7% shy of consensus, while EBITA was c22% below. The main bright spot was the Swedish margin, coming in above consensus, and showing positive momentum QOQ after several tough quarters in 2024. We reiterate our BUY but have lowered our target price to SEK93 (95).

The weekly navigator

From the past week, we highlight: 1) we lowered our target price in Investor to SEK320 following a 9% write-down of Patricia Industries in its Q1 report; 2) we reduced our target price in Kinnevik to SEK100 to reflect macroeconomic headwinds, but remain positive ahead of Cristina Stenbeck’s return as chair; 3) we cut our VEF target price to SEK2.5 on FX movements and see re-rating potential from e.g. ongoing buybacks; and 4) we lowered our target price in Flerie to SEK57 given worsening funding conditions for biotech assets.

Huhtamaki (Buy, TP: EUR42.00) - Q1 mixed elements

The Q1 results broadly met headline expectations. While underlying North American earnings declined sharply, solid cost actions helped offset the impact at the group level, a trend we expect to continue to support earnings resilience in 2025. We reiterate our BUY and EUR42 target price on minor 2025–2027 estimate changes, and continue to find the NTM EV/EBIT of c11.0x attractive (25% below its historical average).