Deutsche Bank Initiates Trelleborg with Overweight Rating

Key Analyst Recommendation

Deutsche Bank has initiated coverage on Trelleborg (STO:TRELB) with an Overweight rating, establishing a price target of 450 Swedish kronor. This target implies a potential upside of 18% by June 2027.

The bank's analysis suggests Trelleborg is an attractive investment following a period of underperformance relative to its sector.

Market Outlook and Growth Drivers

The positive outlook is based on bullish expectations for Trelleborg’s key end markets in 2026, including aerospace, construction, general industrial, and biopharma. With its major portfolio transformation now complete, the company is well-positioned for higher and more sustained growth.

Deutsche Bank's organic growth projections for the company exceed consensus estimates by 100 basis points for 2026 and 200 basis points for 2027.

Financial Projections and Valuation

The bank's analysis indicates a potential for an additional 11% upside to earnings per share in 2027 if Trelleborg increases its leverage, although this scenario is not in their base model. Furthermore, their 2027 adjusted EBITA estimates are 5% ahead of the market consensus, supported by expected mid-single-digit organic growth from 2026 to 2028.

Summary

Deutsche Bank's initiation presents a strong case for Trelleborg, underpinned by its completed restructuring, robust end-market demand, and a favorable entry point. Key factors to watch will be the company's execution on organic growth targets and margin development.

FAQ

Q: What is Deutsche Bank's rating for Trelleborg stock?
A: Deutsche Bank initiated its coverage on Trelleborg with an Overweight rating.

Q: What is the price target for Trelleborg (TRELB)?
A: The price target is set at 450 Swedish kronor, suggesting a potential 18% upside.

Source: Investing.com