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Investing.com - Citi upgraded EQT AB (ST:EQTAB) (EQT:SS) stock rating to buy from neutral on Thursday, while raising its price target to SEK335.00 from SEK270.00, citing multiple potential catalysts over the next 12 months.
The Swedish private equity firm’s shares have recovered almost 30% from their early to mid-April lows, but Citi believes further upside remains. The bank highlighted several factors that could drive EQT’s stock higher, including a constructive outlook at upcoming first-half 2025 results.
Citi expects acceleration in exit activity from current robust levels, which would strengthen confidence in EQT’s fundraising capabilities. The firm specifically mentioned execution opportunities for BPEA IX fundraising and potential upside for EQT XI and Infra VII funds.
The bank also noted that EQT offers "attractive M&A optionality," referencing a May 2 Bloomberg report that linked EQT to investment manager Arctos. Citi sees EQT as "relatively more geared to an uptick in industry activity" in the second half of 2025 and beyond.
Citi’s new SEK335 price target implies EQT should trade at a two-year forward price-to-earnings ratio of 19x and an adjusted comparable fee-related earnings multiple of 27x. The bank increased its earnings estimates for EQT by up to 20%.
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