Truck and bus manufacturer Volvo has received new analyst updates on Thursday ahead of its Q4 earnings report.
Pareto has reiterated its buy recommendation and raised its price target to 330 kronor from 300.
The research firm sees improved demand for trucks in Europe and North America and has increased its forecast for truck order intake in the fourth quarter.
Handelsbanken also maintains its buy recommendation and raises its twelve-month price target to 345 kronor from 300. The bank notes that the stock has risen by 11 percent over the past twelve months, which is 7 percent less than the Nordic industrial goods sector. The price target increase is based on the cash flow valuation model, as well as expectations of earnings growth in 2026. The current valuation is considered attractive.
"We expect Volvo to maintain its extraordinary and ordinary dividend for the 2025 financial year, supported by strong cash flow but also improved prospects for 2026. We believe the company will reiterate its truck volume guidance for Europe, but raise it for North America by 15 000 units to 265 000," Handelsbanken writes in its analysis.
AB Volvo is the leading European truck maker and No. 3 worldwide. Net sales break down by activity as follows:
- sales of trucks (68.4%): 219,377 vehicles sold in 2024 (names Volvo, Renault, Eicher and Mack);
- sales of construction equipment (16.8%): excavators, loaders, backhoes, hydraulic shovels, graders, dump trucks, etc.;
- financial services (5.1%);
- bus and chassis sales (4.7%): world's No. 2 largest manufacturer;
- sales of parts, control systems, and marine and industrial motors (3.8%): for commerce and cruise ships and for industrial applications (irrigation units, lifting trucks, electrical generators, etc.);
- other (1.2%).
Net sales are distributed geographically as follows: Europe (41.1%), North America (30.8%), Asia (11.2%), South America (10.7%), Africa and Oceania (6.2%).
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