The weekly navigator

From the past week, we highlight: 1) our deep dive into Kinnevik’s ‘core growth companies’; 2) our lowered target price of SEK105 for Kinnevik, following the Q3 results; 3) our raised target price of SEK330 for Investor; 4) our lowered target price of SEK375 for Industrivärden; and 5) our reduced target price of SEK68 for Flerie.

Higher conviction after strong Q3

The weekly navigator

From the past week, we highlight: 1) our deep dive into Kinnevik’s ‘core growth companies’; 2) our lowered target price of SEK105 for Kinnevik, following the Q3 results; 3) our raised target price of SEK330 for Investor; 4) our lowered target price of SEK375 for Industrivärden; and 5) our reduced target price of SEK68 for Flerie.

Industrivärden (Hold, TP: SEK375.00) - Portfolio view less positive

We maintain a positive view on large parts of the portfolio, including an assumption of 19% 12-month forward NAV growth. That said, with the near record-low discount of 2%, we believe investors are still better off investing directly in the underlying assets, which are trading at a portfolio-weighted P/E of c13x, a ~25% discount to the OMXS30. We remain on the sidelines and reiterate our HOLD, and have lowered our target price to SEK375 (380), reflecting our more neutral view of its core holding, Volvo (~30% of its fully replicable portfolio).

ABB (Hold, TP: SEK640.00) - Fair value territory

We have downgraded ABB to HOLD (BUY) as the risk/reward and valuation look fairer, in our view, at a 2025e EV/EBIT of 17.3x. We view Q3 as neutral overall, but have lowered our 2024–2026e operating EBITA by c5% on average, and reiterate our SEK640 target price. The new CEO emphasised a focus on decentralisation and profitable growth, rather than large structural changes.