GS cuts Essity to 'sell' on earnings, separation risks

Essity AB (publ)

28/07/2026 12:54

** Goldman Sachs downgrades Swedish hygiene products maker Essity ESSITYb.ST to "sell" from "neutral" due to earnings risks and business separation uncertainties
** It sees risk of consensus downgrades as product pricing continues to lag behind accelerating input-cost inflation
** GS anticipates Q3 EBITA margin to bottom out at 11.1%, implying a 14% miss versus consensus 
** While a consumer tissue unit divestment could act as a catalyst, the broker sees limited upside as current valuation already prices in the remaining business
** The broker adds transaction valuation and achievable cost savings remain uncertain in the near term limiting upside from current trading levels

(Reporting by Marta Frackowiak)
((marta.frackowiak@thomsonreuters.com))