Set for spicy growth

Our recent field trip to India (visiting Volvo, Epiroc, Trelleborg, Autoliv and others) alongside our analysis suggests the country is set to take centre stage as a global manufacturing hub over the coming decade, shifting from being the sixth- to the third-largest end-market for the Swedish Industrial sector. India’s strong economic growth trajectory and favourable demographics mean the companies: 1) see double-digit growth as sustainable; 2) are pursuing manufacturing capacity expansions; and ...

Husqvarna (Sell, TP: SEK48.00) - Structural headwinds intensifying

Following the Q4 results, we see sales and EBIT under continued pressure from prolonged weak consumer demand, increased competitive pressure, and spillover effects from exiting petrol-powered legacy businesses. We reiterate our SELL, and have lowered our target price to SEK48 (50).

Stronger end-markets ahead: BUY

Slightly better than feared, partnership in the US

Greener grass in 2025

Husqvarna (Sell, TP: SEK50.00) - Headwinds are intensifying

Following yesterday’s Q4 profit warning, we expect sales and EBIT to come under further pressure from weaker-for-longer consumer demand, intensified market challenges and promotional activity, as well as negative mix effects and lower inventory build-up from retailers and dealers. Consequently, we reiterate our SELL and have cut our target price to SEK50 (55).

Profit warning in a small quarter

Sales recovery and cost cuts ahead

Q3 results slightly better than feared, new cost savings

Profit warning points to a soft Q3

US consumers gearing up to spend in 2025

Greener grass next year: upgrade to BUY (Hold)

Husqvarna (Sell, TP: SEK53.00) - Competitive pressure mounting

Following Tuesday’s Q3 profit warning, we see sales and EBIT coming under further pressure from weaker-for-longer consumer demand and increased competitive pressure, particularly from Chinese peers. We reiterate our SELL and have cut our target price to SEK53 (63).

Q3 profit warning

Husqvarna AB: 1 director

A director at Husqvarna AB bought 6,000 shares at 68.980SEK and the significance rating of the trade was 50/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly s...

Husqvarna (Sell, TP: SEK63.00) - Pressure mounting

We believe Q2 headwinds including continued weak end-market demand, lower production volumes YOY, and increased competition within consumer robotics will linger in H2. We expect organic growth and earnings to remain under pressure in 2024, we reiterate our SELL and have reduced our target price to SEK63 (65).

Too early to beg for good weather

-6% org. growth was 4pp short of our estimates. Consumer robotics decreased but pro grew strongly, as expected. '24e-'26e EBIT cut by 15-6%, TP down to SEK 82 (86): HOLD.

Q2 results well below expectations

Q2 preview: flattish earnings expected

A warm but rainy Europe and heat waves in the US. Tough comps for consumer robotics in Q2'24e. We reiterate HOLD at ~13.3x adj. EV/EBIT('24e).

Husqvarna Minor model adjustments

We have updated our 2024 estimates, as we now forecast a lower magnitude of end-market headwinds for Q2 than previously expected. The results are due at approximately 07:00 CET on 18 July. We do not consider these changes to be material, and we have not changed our SELL recommendation. We have raised our target price to SEK65 (63).