DB starts Skanska with 'buy' on strong earnings growth

Skanska AB

17/04/2026 13:32

** Deutsche Bank initiates Swedish construction firm Skanska SKAb.ST with a "buy" rating and a SEK 300 PT citing accelerating earnings growth and de-risked building margins

** The brokerage notes the construction division generates most of the earnings and benefits from a strong backlog and sustainable margin improvement with better predictability

** "Project Development has substantial recovery potential when market conditions improve", the broker adds regarding the company's property development segment

** DB views the projected mid-teens compound annual growth rate in EPS as highly attractive for the current mid-cycle price-to-earnings valuation multiple

** Reaching group targets could double profits over the medium term the broker says, highlighting scope for ongoing special returns following the 2025 special dividend payout

** Out of ten analysts that cover the stock, four rate it "strong buy" or "buy", four rate "hold", and two rate "sell", according to LSEG data

 (Reporting by Marta Frackowiak)

 ((marta.frackowiak@thomsonreuters.com))