Deutsche Bank has initiated coverage on Trelleborg, assigning an Overweight rating and a price target of 450 SEK, anticipating an 18% gain by mid-2027. The bank's positive perspective is anchored in robust growth projections across aerospace, construction, industrial, and biopharma sectors through 2026, alongside expectations of organic growth outpacing consensus.
Key Points
- Deutsche Bank assigns an Overweight rating to Trelleborg with a 450 SEK price target, projecting an 18% upside by mid-2027.
- Bullish forecasts for aerospace, construction, general industrial, and biopharma segments underpin growth expectations through 2026.
- Trelleborg’s completed portfolio transformation positions it for organic growth surpassing consensus estimates and margin improvements by 2027.
In a recent sector analysis, Deutsche Bank launched coverage on Trelleborg (STO:TRELB), endorsing the stock with an Overweight rating and setting a price target at 450 Swedish kronor. This forecast represents an anticipated price appreciation of approximately 18% by June 2027, reflecting confidence in the company's growth trajectory.
The optimistic outlook stems from Deutsche Bank's 2026 Outlook report, which projects favorable demand dynamics across several of Trelleborg’s key markets including aerospace, construction, general industrial, and biopharmaceutical industries. These sectors are expected to contribute materially to the company’s revenue expansion near term.
Deutsche Bank emphasized that following a significant portfolio transformation, now largely completed, Trelleborg is strategically positioned to realize accelerated and sustained growth. The bank forecasts that Trelleborg’s organic growth rates will surpass consensus estimates by an additional 100 basis points in 2026 and by 200 basis points in 2027.
Furthermore, Deutsche Bank’s financial modeling indicates the potential for an extra 11% boost to earnings per share in 2027 contingent on Trelleborg achieving a leverage ratio of 2.0x, though this outcome is excluded from the current valuation framework.
Analysts also underscored that Trelleborg’s relative underperformance in comparison to its industry peers over the previous 12 to 18 months has created an enticing entry point for investors. They anticipate mid-single-digit organic growth in the 2026 to 2028 period, which will support margin expansion. Consequently, Deutsche Bank’s adjusted EBITA projections for 2027 outpace consensus by roughly 5%.
This analysis encapsulates Deutsche Bank’s comprehensive assessment of Trelleborg’s fundamentals and market positioning, highlighting both growth potential and valuation appeal amid evolving sector dynamics.
Risks
- Trelleborg has underperformed sector peers in the past 12-18 months, which could reflect underlying challenges or market perceptions.
- Potential for earnings upside related to a leverage ratio of 2.0x is not factored into current forecasts, indicating financial leverage risks.
- Reliance on sustained growth in multiple end markets introduces exposure to sector-specific economic fluctuations, especially in aerospace and industrial segments.