SB1 Markets has initiated coverage of the engineering consultancy Sweco with a Buy rating and a price target of SEK 170, according to an analyst update.

Sweco is described as a high-quality company with strong cash generation and low leverage.

The research firm expects organic growth to recover in 2026 and EBITA margins to gradually increase, supported by improving Nordic construction markets and European infrastructure investments.

"We believe that this improved growth profile, together with further acquisitions, could help lift sentiment around the stock from today's depressed levels," SB1 writes.