Engineering consultancy Sweco has received a buy recommendation from Dagens industri in its "Stock of the Week" column.

The newspaper notes that the share price has retreated 25 percent over the past year due to factors that have spooked the market, such as the AI boom and the conflict in Iran. However, these concerns are deemed excessive.

Regarding AI, the market fears that clients may perform part of the work themselves using the technology rather than turning to Sweco. Di argues that Sweco is involved in complex, large-scale projects that are difficult to automate and thus require experienced consultants.

"The engineering consultancy also benefits from the expansion of AI infrastructure, as it contributes to growth within their operations targeting data centers and energy supply, among others," Di adds.

While the conflict in Iran could negatively impact the economic recovery, it may simultaneously lead to increased demand for Sweco's services in areas such as energy supply, infrastructure, and security and defense, according to Di.

Another cushion for Sweco is its low net debt, which paves the way for further acquisitions in 2026.

Overall, Sweco trades at a premium to its listed rivals Afry and Rejlers, but according to Di, this is deserved "given its size, strong track record, and well-managed finances," adding that Sweco also boasts higher profitability than its competitors.