Jefferies cuts Skanska on 'inevitable' property valuation pressure

Skanska AB

05/10/2026 08:29

** Jefferies downgrades Swedish construction firm Skanska SKAB.ST to "hold" from "buy", as rising bond yields pressure the commercial real estate market and threaten asset valuations
** The broker lowers its price target for the stock by 2.6% to SEK 297/shr, noting that against the current high interest rate backdrop "pressure on valuation feels inevitable"
** The brokerage adds that the company holds significant investments in US commercial real estate where a shrinking project pipeline and higher yields put valuations most at risk
** Jefferies cuts its earnings estimates by up to 9% to reflect reduced sales activity and applies a larger discount to the book value of the property division
** A strong construction backlog might offer valuation support, but the broker expects this will not fully offset the looming property weakness ahead of Q3 results
** The stock is down 3.7% at 07:07 GMT
** Out of ten analysts that cover the stock, five rate it "strong buy" or "buy", four rate "hold", and one rates "sell", according to LSEG data
     
     
     
     

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