Private equity firm EQT has retreated since mid-January, following sector-wide concerns regarding software valuations, weakness in Private Credit, and a broad risk-off sentiment.

Ålandsbanken, however, assesses the decline as excessive, noting that EQT's exposure to software and Private Credit is relatively low, at less than 10 and 5 percent of assets under management, respectively.

With earnings growth projected at approximately 41 percent over the next twelve months, a dividend yield around 2 percent, and potential catalysts such as increased exit activity, share buybacks, and positive earnings revisions, the bank sees an upside potential of nearly 50 percent from the current level of around 274 SEK.