On Friday, JPMorgan (NYSE:JPM) made a slight adjustment to the price target on EQT AB (ST:EQTAB) (EQT:SS) (OTC: EQBBF), raising it to SEK395.00 from SEK394.00 while maintaining an Overweight rating on the stock. The investment firm modified its expectations for the company's earnings, citing a variety of influences, including a more conservative outlook from EQT's partners.
The analyst from JPMorgan indicated that the revised price target reflects lowered carry estimates for the second half of 2024, following cautious indications from EQT's partners and discussions with the company itself. As a result, the analyst has decreased earnings per share (EPS) projections by 8% for 2024 and by 7% for 2026. However, the estimates for 2025 and 2027 remain unchanged.
Despite the reduction in earnings estimates for the upcoming years, JPMorgan's analysis suggests that the market has already accounted for these lower expectations, with buy-side forecasts coming in below the sell-side consensus. The firm's attention is now on what is anticipated to be a significant increase in EQT's profitability starting from 2025, driven by higher carried interest and the fundraising of new flagship funds.
JPMorgan forecasts a compound annual growth rate (CAGR) of 24% in EPS from 2023 to 2027 for EQT AB. This projection is expected to further support the valuation of the company. The firm reaffirmed EQT AB as its top pick within the European private markets sector, emphasizing the potential for growth in the coming years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.