Volvo Cars (Hold, TP: SEK25.00) - Still long wait for better cash flow
We do not see material downside risk going into Q4, but remain on the sidelines, as we are 15–33% below 2025–2026e consensus on adj. EBIT and see upside potential should the company meet its guidance of “strong” cash flow in 2026. We believe consensus is underestimating the negative effects of price/mix headwinds, and expect management to guide for mid-single-digit growth in retail sales in 2025 (we estimate 4%, consensus: 6%). We reiterate our HOLD and SEK25 target price.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.