Saab share price decline not enough to raise rec, Kepler reiterates hold
Kepler believes that the price drop is further proof that market expectations for defense stocks are high enough.
"It is clear that it will be more difficult to increase the margin in the medium term more than the growth on the top line suggests. This does not mean that Saab is a bad investment now that the deleveraging phase we called for has given the stock a more reasonable valuation. Despite the upside we now see to our 12-month target price and the strong organic sales momentum, there are still no catalysts for an upgraded recommendation," it says.
The share is down 0.2 percent to SEK 223.10.
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