Volvo Cars (Hold, TP: SEK39.00) - Better than it looked
We were impressed by the BEV and non-BEV gross margins, both of which improved YOY and beat our expectations. Q1 still looked disappointing on headlines as sales were soft and ‘other’ costs diluted the strong margins. However, we believe the positives outweighed the negatives and have raised our 2024–2026e EBIT before JVs by 17–0%, albeit remaining materially below consensus for 2025–2026e. We reiterate our HOLD but have cut our target price to SEK39 (42).
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.
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