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On Tuesday, Citi analyst Nicholas Herman adjusted the price target for EQT AB (ST:EQTAB) (EQT:SS) (OTC: EQBBF), lowering it to SEK275.00 from the previous SEK375.00. Despite this change, the firm maintained a Neutral rating on the company’s shares.
The adjustment comes as EQT faces various pressures that could impact its performance. The analyst pointed out that EQT’s focus on large-cap transactions, which tend to be more cyclical than mid-market deals, could be a cause for concern. Additionally, the company’s portfolios are relatively more concentrated, and it has greater exposure to the tech and healthcare sectors, both of which have recently experienced significant valuation changes.
Herman also highlighted EQT’s upcoming fundraising cycle, noting the risks associated with it. According to his analysis, both EQT and its peer, CVC, are trading at a comparable forward revenue multiple of approximately 16 times for the forecasted FY26-28 period. However, the analyst suggested that CVC’s broader diversification and absence of fundraising risk should position it more favorably in the current market environment.
The newly set price target for EQT implies a forward revenue (FRE) multiple of 21 times, compared to 26 times for CVC. This difference reflects the analyst’s view that CVC’s advantages should warrant a higher valuation relative to EQT. Despite acknowledging EQT’s medium-term growth potential, the current market conditions and the company’s specific challenges have led to the decision to reiterate a Neutral stance.
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