Muted 2025 growth expectations

Following Q1 earnings calls by some of the oil service companies, 2025 outlooks appear more challenging than previously. Baker Hughes expects international upstream spending to decline by mid- to high-single digits, while Halliburton sees its international revenues flat to slightly down. Furthermore, Weatherford expects 2025 international revenue to decline by low double- to mid-double digits. Precision Drilling flagged additional rig suspensions by Saudi Aramco, and SLB highlighted a slow start to the year in Saudi Arabia and Mexico. Recently, ENI became the first large oil company to introdu...

Demand recovery continues to be delayed

Should continue to be the relative winner

Humana (Buy, TP: SEK52.00) - Growth agenda back in focus

The Q1 results were mixed, but with the financials now in good order, we see more of a growth focus ahead. We find management’s priorities logical, with our underlying forecast largely unchanged, but our 2025–2027e EPS cut by 6–2% on FX and non-cash items. We reiterate our BUY, but have trimmed our target price to SEK52 (53), focusing on Humana’s market opportunity, operating profile, financial outlook and valuation.

Lime Technologies (Sell, TP: SEK355.00) - Remain cautious

Softness in Expert Services kept organic growth at only 10%, and with the macroeconomic uncertainty, we see a risk that weaker growth will continue in the coming quarters. We reiterate our SELL and SEK355 target price.

Netel Group Holding (Buy, TP: SEK18.00) - Solid outlook for 2025

Q1 offered further signs of good progress towards reducing volatility and improving performances across its operations, albeit in a seasonally small (start-up) quarter. We still see solid demand fundamentals and Netel further rebuilding its financial capacity in 2025. Lowering its financial targets looks logical to us, despite triggering 12–13% cuts to our 2026–2027e EPS. We still like the stock (2025–2027e FCF yield of 13–23%), and reiterate our BUY, but have cut our target price to SEK18 (22).