Pattern generator specialist Mycronic has seen a wave of downgrades after the stock surged on the back of its Q1 report on Friday. The shares had already been on a strong upward trajectory leading up to the release.

ABG Sundal Collier, SEB, Nordea, and DNB Carnegie have all lowered their recommendations to Hold (from Buy). Meanwhile, price targets have been raised by most research houses, including Handelsbanken, which maintains its Buy rating.

Nordea notes that Mycronic's valuation has become stretched after the stock advanced approximately 60 percent since its Q4 trough.

The bank simultaneously highlights a continued positive long-term outlook, citing a dominant position in pattern generators and a growing contribution from the Global Technologies business area. However, the risk/reward profile is deemed less attractive at current levels, with a fair value set at SEK 268.

SEB writes that short-term momentum in Mycronic is now priced in following the strong share price performance, and that the market is awaiting better visibility regarding 2027 earnings. The bank also points to a high premium of 30 percent, compared to the historical average of 18 times.

At the same time, adjusted operating profit estimates for 2026-2028 are being raised by 6-8 percent, resulting in a higher price target for Mycronic of SEK 315 (280).

ABG Sundal Collier's new price target is SEK 300 (265), while Handelsbanken raises its target to SEK 340 (300). DNB Carnegie sets its target at SEK 315 (240).

Mycronic is currently trading down 2.4 percent.