Balanced Risk-Reward Keeps Rating at Hold Despite Solid Fundamentals and Modest Valuation Upside

James Wheatcroft, an analyst from Jefferies, maintained the Hold rating on Better Collective A/S. The associated price target is SEK120.00.

James Wheatcroft has given his Hold rating due to a combination of factors that balance solid fundamentals with a still-muted valuation re-rating. The company’s latest quarter broadly matched guidance and market expectations, with revenues in line and EBITDA slightly ahead, while management reiterated medium-term targets that call for steady organic revenue and EBITDA growth, even after incorporating new tax headwinds.

At the same time, the stock already trades on a relatively low FY26E EV/EBITDA multiple, suggesting some upside as confidence in guidance and cost savings is rebuilt and as capital allocation shifts toward buybacks and disciplined M&A. However, given that the current valuation discount and improving outlook are largely understood by the market and not yet accompanied by a clear catalyst for a sharp re-rating, Wheatcroft judges the risk‑reward as balanced, supporting a Hold rather than a more aggressive stance.