Hold Rating Maintained for Fortnox AB Amid EQT Takeover Bid and Mixed Financial Performance

Jefferies analyst Charles Brennan maintained a Hold rating on Fortnox AB (FNOX – Research Report) today and set a price target of SEK90.00.

Charles Brennan has given his Hold rating due to a combination of factors surrounding Fortnox AB. The company is currently the subject of a takeover bid from EQT, which influences the current valuation and price target alignment to the offer price of SEK 90.
Additionally, the recent financial performance of Fortnox AB showed revenues that met expectations and stronger-than-anticipated margins, resulting in a slight EBIT beat compared to consensus. However, there were concerns regarding cash flow, which was weaker than expected due to higher cash taxes and working capital outflows related to lending. These elements combined led to the decision to maintain a Hold rating, reflecting a balanced view of the company’s current market position and financial outlook.

In another report released on April 24, Kepler Capital also maintained a Hold rating on the stock with a SEK90.00 price target.