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Swedencare: Transitory Margin Headwinds and Strong Organic Growth Underpin Buy Rating

Swedencare: Transitory Margin Headwinds and Strong Organic Growth Underpin Buy Rating

Analyst Adela Dashian of Jefferies maintained a Buy rating on Swedencare AB, with a price target of SEK55.00.

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Adela Dashian has given his Buy rating due to a combination of factors, including Swedencare’s ability to maintain net sales in line with expectations while delivering solid double‑digit organic growth. The company’s revenue mix, with strong traction in Europe and in the Production segment, helps offset weaker volumes in North America, which supports confidence in the underlying demand profile.

At the same time, the modest shortfall in profitability versus consensus is mainly linked to temporary cost pressures from Amazon‑related activities and increased trade‑fair participation, which management expects to normalize in the second half. With management indicating that most profitability headwinds seen in 2025 have been addressed and cost levels are targeted to improve, Dashian views the current margin impact as transitory and sees an attractive setup for earnings recovery supporting a Buy recommendation.

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