Inderes reiterates its "reduce" recommendation for Saab, maintaining a target price of 615 kronor. The analysis notes that the company lacks direct exposure to the Middle East conflict and that it is too soon to adjust estimates.
While faster European procurement processes could eventually support revenues, there are currently no concrete signs of increased demand. Inderes considers the current valuation unsustainably high without clear fundamental improvements.
"The conflict is only about 60 hours old and the outcome remains highly uncertain, so we are keeping our estimates unchanged. To revise our figures, we would first need evidence that the situation is leading to higher demand, such as accelerated procurement announcements, order intake significantly above our assumptions, or an upgrade of Saab's guidance," the Finnish analysis firm writes.
SAAB AB is a world leader in the design, manufacturing and marketing of defense and security systems and equipment for military, space and civil sectors. Net sales break down by family of products and services as follows:
- electronic defense systems (33.4%): radars, sensors, submarine and terrestrial airborne surveillance systems;
- armament equipment and systems (25.6%): military equipment, missile systems, weapon systems, ammunition, armed forces identification systems, camouflage systems, etc. The group also provides security and defense solutions (combat systems, training, simulation, security and communication solutions, air and sea traffic management systems, etc.);
- aeronautical systems (24%): military aircraft, combat aircraft, avionics, etc.;
- naval systems (11.8%): submarines, combat ships, underwater mine detection systems, etc.;
- support services (4.2%): provision of services in the areas of systems development, integration and security, information security, communications, technical information, logistics, etc., and technological consulting in the fields of aviation, defense, telecommunications, etc.;
- other (1.1%).
Net sales are distributed geographically as follows: Sweden (41.1%), Europe (25.8%), North America (8.9%), Asia (7.4%), Latin America (4.3%), Australia (3.8%), Africa (0.6%), and other (8.1%).
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Investor
Investor
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ESG MSCI
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