Handelsbanken has reiterated its Hold recommendation for engineering consultancy Sweco following a company presentation with CFO Jan Allde.
The research house highlights sustained robust demand in infrastructure, water, environmental services, and security and defense-related projects, while the industrial and residential construction markets remain weak. Investments linked to AI and data centers are also expected to drive demand going forward.
Handelsbanken further points to Sweco's low leverage and continued focus on acquisitions. The German market, in particular, is viewed as an attractive long-term opportunity, where Sweco currently holds a market share of only 2-3 percent despite being the fourth-largest player. According to the analysts, the stock's valuation multiples have retreated to more attractive levels, while Sweco remains positioned to further improve organic growth.
Sweco AB (publ) is a Sweden-based company engaged in the provision of consulting services within the areas of engineering, environmental technology and architecture. The Company offers multidisciplinary services in segments: The Buildings and urban areas segment develops solutions to help cities grow and become resilient, attractive places to live; The Water, energy and industry segment designs modern technological solutions that ensure society’s and industry’s access to clean water, reliable energy supply and increased resource efficiency; The Transportation infrastructure engaged in the design sustainable transport solutions that enable tomorrow’s cities and societies to manage a growing population and new mobility demands; and The Architecture integrated architecture and engineering operations in seven of its eight main markets.
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