Kepler Cheuvreux moves Volvo to 'hold' on limited upside after strong performance

Volvo AB

16/01/2026 09:26

** Kepler Cheuvreux downgrades Volvo VOLVb.ST to "hold" from "buy," pointing to the Swedish truck maker's strong share price performance, which it says now limits potential upside

** Volvo's shares rose some 10% over 2025 and up to Thursday's close were up around 7% so far this year

** The broker raises its PT by 14% to SEK 325, driven mainly by expanding sector multiples and views the company as "reasonably priced"

** It forecasts around 30% earnings per share decline in 2025 and expects a dividend cut, anticipating an 18% year-on-year drop in Q4 operating earnings

** Still, it notes Volvo has a "strong financial position" and sees the company's construction equipment business as a "hidden gem"

(Reporting by Agnieszka Olenska)

((Agnieszka.olenska@thomsonreuters.com))