Europris Faces Struggles in Swedish Market but Maintains Positive Stock Outlook
Europris maintains a buy rating despite financial losses in Sweden, with potential stock growth ahead.
Key Points
- • Europris experiences strong growth in Norway but significant losses in Sweden.
- • Affärsvärlden retains a buy recommendation for Europris despite challenges.
- • Valuation could drop from 15 to 11 times earnings by 2027 if performance improves.
- • Potential 31% stock price increase anticipated if forecasts are fulfilled.
Europris, the Norwegian discount retail chain, is grappling with significant financial losses in its Swedish operations, primarily through its ÖoB brand. Despite these challenges, the financial publication Affärsvärlden has reaffirmed its buy recommendation for Europris, projecting a potential 31% upside in the company's stock over the next few years.
As of July 10, 2025, the performance of Europris in its home market of Norway remains strong, while the losses in Sweden pose a substantial concern. The latest financial analysis indicates that if the Swedish market improves, Europris's valuation could decrease from 15 times its current earnings to about 11 times by 2027. This contrast with competitors such as Rusta and Clas Ohlson may still position Europris attractively in the market.
While acknowledging the difficulties faced in Sweden, Affärsvärlden’s analysis emphasizes the importance of monitoring the company’s operational strategies moving forward. The prevailing sentiment is that improvements in the Swedish business could significantly bolster the company's overall market position and stock performance. As Europris continues to navigate these challenges, stakeholders are advised to remain vigilant about developments in the Swedish sector.