Analysts Raise Arjo Price Target 23.9% After Third-Quarter Results Beat Expectations
Key Facts
Analysts raised their average price target for Arjo by 23.9% to 35.57 Swedish kronor, from 28.71 kronor previously, after third-quarter results beat expectations, according to a MarketScreener report published on November 6. The company’s revenue rose 7.7% to 2,849 million kronor, 3.4% ahead of analysts’ estimates. Adjusted earnings before interest, taxes, depreciation and amortization also increased 20% to 523 million kronor, 13.0% above the consensus estimate of 463 million. Analysts’ average recommendation shifted from "hold" to "overweight" after the report. The revisions followed the results announcement on October 22, with improved profitability alongside revenue growth.
Compared with the same period a year earlier, operating indicators improved, with Arjo reporting organic sales growth of 6.0% in the third quarter of 2026. The gross margin rose to 43.0%, compared with 41.1% in the third quarter of 2025. Adjusted earnings before interest, taxes, depreciation and amortization increased to 523 million kronor from 436 million a year earlier. Adjusted operating profit was 247 million kronor, compared with 165 million in the same period. Cash flow from operations rose to 485 million kronor from 446 million, according to the company’s report for January to September.
But sales growth did not translate into higher earnings per share year over year; Arjo reported net sales of 2,849 million kronor in the third quarter of 2026, compared with 2,646 million in the third quarter of 2025. Meanwhile, diluted and basic earnings per share were 0.21 kronor, compared with 0.30 kronor a year earlier. The sales figures allow a direct comparison between the periods, while per-share figures show a year-on-year decline. The company’s results included organic sales growth of 6.0%, alongside an expansion in the gross margin. Organic growth was 3.8% in the third quarter of 2025, when sales were 2,646 million kronor.
Analyst estimates also rose: FactSet consensus for adjusted earnings before interest, taxes, depreciation and amortization for the current year increased 2.0% to 1,999 million kronor. Its estimate for next year rose 0.8% to 2,115 million kronor. Sales estimates were also revised higher, with the current-year forecast up 0.9% to 11,354 million kronor. For next year, sales estimates increased 1.2% to 12,003 million kronor. The revisions reflect higher earnings and sales estimates after the third-quarter report, while the average price target remained at 35.57 kronor in the November 6 report.
The stock posted strong gains around the results announcement, rising 15.6% on the announcement date, October 22, 2026. By the date of MarketScreener’s report on November 6, it was up 29.7% compared with its closing price on the day before the report. Over the same period, Sweden’s benchmark OMXS30 index rose 0.1%. This puts the stock’s performance over the period in the context of the widening gap between its gains and those of the index. The report said the new average price target of 35.57 kronor followed a 23.9% increase from the previous level of 28.71 kronor.
Chief Executive Andreas Elgaard said the company continued to grow and strengthen profitability, citing organic growth of 6% for the quarter. He added: "Our focus now is on turning our strategy into results and gradually building a stronger Arjo for the future." At its Capital Markets Day, the company had presented a strategy that includes a more customer-focused operating model. The plan includes a commitment to improve operating profit before interest and taxes by about 350 million kronor compared with 2025. The company set mid-2029 as the target date for achieving this improvement.