Handelsbanken has initiated coverage of hygiene and health company Essity with a buy recommendation and a target price of 320 SEK.
"Essity is facing a clear turnaround point in 2026, with potential volume growth, increased market share, and a more aggressive growth agenda under the new CEO. Given the low valuation and a strengthened financial position following the Vinda sale, we see significant upside in the stock," the bank stated.
Essity AB is one of the world's leading manufacturers of hygiene products. Net sales break down by family of products as follows:
- paper hygiene products (54.2%): paper towels, toilet paper, handkerchiefs, wipes, etc. sold under Tempo, Colhogar, Cozy, Cushelle, Danke, Delica, Demak Up, Favorita, Flen, Lotus, Lovly, Okay, Plenty, Regio and Zewa brands;
- professional hygiene products (25.9%): including toilet paper, handkerchiefs, hand lotions and hand soaps, hand sanitizers, as well as cleaning and wiping products;
- human care products (19.8%): incontinence products (Tena), feminine protection products (Libresse, Bodyform, Nana, Nuvenia, Saba, Nosotras, Donnasept, etc.), diapers (Libero, Up & Go, Libero-Peaudouce, Drypers, Pequenin, etc.), compresses and bandages;
- other (0.1%).
At the end of 2025, the group operated around 70 production sites in the world.
Net sales are distributed geographically as follows: Europe (61.1%), Latin America (17.4%), North America (16.2%), Asia (1.6%), and other (3.7%).
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