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On Friday, JPMorgan analysts initiated coverage on Hemnet Group AB stock with a Neutral rating and set a price target of SEK295. Hemnet, the largest online property portal in Sweden, is recognized for its strong market position and revenue growth potential.
JPMorgan analysts highlighted Hemnet’s ability to capitalize on its market leadership through price increases and upselling strategies. The company is well-positioned to benefit from a recovery in the Swedish property market, which could lead to an increase in overall listings.
Hemnet has demonstrated impressive revenue growth, with a 26% compound annual growth rate (CAGR) from 2019 to 2024. Analysts expect further growth, driven by increases in average revenue per listing and additional revenue streams, projecting a 22% revenue CAGR from 2024 to 2028.
Despite the positive outlook, JPMorgan analysts remain cautious due to Hemnet’s high valuation. The company’s valuation, at 21.4 times the expected 2026 earnings before interest, taxes, depreciation, and amortization (EBITDA), is considered high compared to peers. This valuation, coupled with limited merger and acquisition opportunities, led to the Neutral rating.
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