Volvo Cars has been a problem child on the Stockholm stock exchange since the listing in 2021. The share that attracted large numbers of small investors in connection with the stock market introduction has declined sharply and is down 60 percent in four years.
That's why SEB's changed view is noteworthy now. From previously having a recommendation to hold, they are raising it to buy.
There is great potential but high risk. It is low valuation but many uncertain variables and things that happen, says Esbjörn Lundevall, chief analyst at SEB, about the share.
SEB is relying, among other things, on the fact that they no longer expect any ban on Volvo cars on the important US market. There has been speculation about such a ban based on the cars' technology and their Chinese connection through the owner Geely.
There we have the view that we do not believe in such a ban, then we can of course be wrong. Then also that the tariffs will be lower than at present, from 27.5 to 15 percent, according to the agreement between Trump and the EU.
SEB is now the only one of the banks that follow the share that has a buy recommendation on Volvo Cars. Today's message makes the share rise by just over 5 percent. The company will release its report for the third quarter next week.
