Nordea has raised its price target for industrial giant Volvo to SEK 380 from SEK 375, while maintaining its Buy recommendation. Concurrently, EBIT forecasts for 2026–2028 have been adjusted upward by 2–4 percent.
Nordea cites an improving market outlook for trucks and construction equipment, bolstered by robust order intake in North America. Earnings are expected to bottom out in the first quarter of 2026 before recovering, with a projected upswing of approximately 40 percent during the second half of the year.
"Despite the strong share price performance since November, we see further upside potential driven by upward earnings revisions, generous dividends, and a valuation re-rating," the bank stated.
AB Volvo is the leading European truck maker and No. 3 worldwide. Net sales break down by activity as follows:
- sales of trucks (66.2%): 202,911 vehicles sold in 2025 (names Volvo, Renault, Eicher and Mack);
- sales of construction equipment (16.7%): excavators, loaders, backhoes, hydraulic shovels, graders, dump trucks, etc.;
- financial services (5.4%);
- bus and chassis sales (5.1%): world's No. 2 largest manufacturer;
- sales of parts, control systems, and marine and industrial motors (4.2%): for commerce and cruise ships and for industrial applications (irrigation units, lifting trucks, electrical generators, etc.);
- other (2.4%).
Net sales are distributed geographically as follows: Europe (43.1%), North America (29.3%), Asia (11.5%), South America (9.7%), and Africa & Oceania (6.4%).
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