Kepler Cheuvreux downgrades Wihlborgs stock rating to Hold on valuation

Published 16/10/2025, 11:22
Kepler Cheuvreux downgrades Wihlborgs stock rating to Hold on valuation

Investing.com - Kepler Cheuvreux downgraded Wihlborgs Fastigheter AB (ST:WIHL) from Buy to Hold and reduced its price target to SEK105.00 from SEK120.00 following the stock’s nearly 10% price increase in one week.

The research firm cited limited growth prospects as a key factor in its downgrade decision, projecting a 2026 estimate cut of 2% and a 2025-2027 funds from operations per share (FFOps) compound annual growth rate of just 3%, below the sector average of 5%.

Kepler Cheuvreux noted several concerns about Wihlborgs, including that 80% of its portfolio consists of office properties, which the firm considers its least preferred segment in the current market.

The downgrade also reflects Wihlborgs’ current valuation, as it trades at only an 8% discount to its 2026 estimated net replacement value (NRV), compared to the sector’s 23% discount, suggesting limited upside potential.

Kepler Cheuvreux’s 2026 income from property management estimate sits 4% below consensus, with the firm citing several limiting factors including vacancy levels and loan-to-value ratios near historical norms, plus the upcoming maturity of favorable hedging contracts in 2026.

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