Swedencare AB, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Adela Dashian from Jefferies maintained a Buy rating on the stock and has a SEK55.00 price target.
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Adela Dashian’s rating is based on Swedencare AB’s impressive third-quarter performance, which exceeded market expectations. The company reported a net revenue of SEK 712.9 million, surpassing consensus estimates by 2%, and an operational EBITDA of SEK 154.9 million, which was 9% higher than anticipated. This growth was driven by a notable acceleration in organic growth to 15%, compared to 7% in the previous quarter, alongside an improvement in the operational EBITDA margin by 0.5 percentage points year-over-year to 21.7%.
Swedencare’s growth was widespread, with Europe achieving 19% organic growth and North America 18%, bolstered by successful expansions into major retailers like Walmart and CVS. The management’s reaffirmation of its full-year guidance for double-digit organic growth and expectations of continued profitability improvements further support the positive outlook. These factors collectively suggest that Swedencare is on a trajectory of sustained improvement, justifying the Buy rating.