Svenska Cellulosa Price Target Down as AlphaValue/Baader Europe Notes Asset Monetization Opportunity

02:21 AM EST, 12/16/2025 (MT Newswires) -- AlphaValue/Baader Europe trimmed Svenska Cellulosa AB's (SCA-B.ST, SCA-A.ST) price target by 2.79% to 174 kronor, noting asset monetization may sway negative market sentiment toward the Swedish forest products company. "Market sentiment has been brutal for SCA, whose shares have now slumped below its five-year lows. This is very harsh for a firm that reported a 9M 25 operating margin of c.24% (vs. c.8% for AV peers), in ongoing challenging end markets. While sustained high-margin contribution of Forests remains the mainstay, perhaps what markets really expect from the Swedish giant, is a clear intent to partly [monetize] its well-appreciated and sizeable forest assets (>60% of gross assets) - largest within AlphaValue Paper & Packaging coverage. In our opinion, with end-2025 expected asset rotation of c.15% vs. c.30% for Holmen (closest competitor), there is ample headroom to [monetize] forests, without really sacrificing the firm's foreseeable future earnings/cash generation capabilities," according to the Monday note. The research firm, which has a buy rating on Svenska Cellulosa, said the company is an "attractive contrarian bet," with assets that have "thrived" amid headwinds, including "(very) high" interest rates. The stock, analysts noted, offers investors a "valuable downside cushion."