Home improvement chain Clas Ohlson received mixed reviews on Friday following its strong report yesterday.
Kepler Cheuvreux lowered its recommendation to reduce (hold) but raised its target price to SEK 280 (220). Pareto also lowered its recommendation to hold (buy) but raised its target price to SEK 310 (290), as it believes that Clas Ohlson has risen too much.
SEB is sticking with its sell recommendation but is raising its target price to SEK 250 (220), while DNB Carnegie is taking a more optimistic view and is repeating its buy recommendation with a higher target price of SEK 360 (290).
"Clas Ohlson is currently valued at a P/E ratio of 20 for 2025/26, which we consider too high for a general retail chain, despite its impressive growth in recent years," Kepler said, according to Aktiellt.
The premium is now considered too high in relation to the historical average.
At the same time, Pareto believes that the valuation now reflects expectations, with the share trading at 13.0 times EV/EBIT and 18.9 times P/E based on forecasts for 2026. The Norwegian-Swedish brokerage firm raised its target price to SEK 310 from SEK 290, but lowered its recommendation to hold from buy as a result of the share price performance.
Clas Ohlson AB is a Sweden-based company active in the retail sector. The Company’s product portfolio comprises five categories: Hardware, offering tools and material to renovate, build, paint and repair; Home, including products for kitchen and bathroom, cleaning, laundry and storage, hygiene and health, school work and leisure; Multimedia, which provides computer and telephone accessories, as well as music equipment; Electrical, such as chargers, cable, clocks and lamps; and Leisure, which supplies products for outdoor and indoor activities. Its distribution channels include retail and online stores, as well as catalogue and telephone sales. Furthermore, It owns a range of brands: Asaklitt, Cocraft, Gavia, Exibel, Coline, and Prologue, among others. The Company operates worldwide through a number of wholly owned subsidiaries, such as Clas Ohlson AS, Clas Ohlson OY, Clas Ohlson Ltd, Clas Ohlson GmbH and Clas Ohlson Ltd.
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