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On Wednesday, Morgan Stanley (NYSE:MS) adjusted its view on Fortnox AB (FNOX:SS), upgrading the company’s stock from Underweight to Equalweight and increasing the price target to SEK 89.75, up from the previous SEK 60.00. This change follows the takeover offer extended by First Kraft and EQT (ST:EQTAB) X, which has received a unanimous recommendation from Fortnox’s board of directors.
The analyst at Morgan Stanley cited the recent approval of a SEK 0.25 per share dividend at Fortnox’s Annual General Meeting on April 10, prompting an alignment of the price target with the adjusted offer price of SEK 89.75. According to the analyst’s statement, based on forecasts, the offer places Fortnox’s valuation at 65 times the calendar year 2025 price-to-earnings (P/E) ratio and 56 times the calendar year 2026 P/E ratio.
Morgan Stanley’s forecasts for Fortnox remain largely unchanged, with only minor adjustments made to reflect full depreciation and amortization details disclosed in the annual report. These updates resulted in slight modifications to the forward-looking depreciation and amortization forecasts for the company.
The operational scenarios provided by Morgan Stanley, including bull, base, and bear cases, have been maintained at SEK 90, SEK 60, and SEK 43, respectively. The analyst’s commentary emphasized that these assessments remain constant despite the recent developments surrounding the takeover bid.
Fortnox’s stock rating upgrade and the new price target reflect the current circumstances following the proposed acquisition. The company’s financial outlook, as reviewed by Morgan Stanley, suggests a stable position in light of the recent offer and the subsequent endorsement by the board.
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