Sandvik AB: Hold Rating Amid Mixed Q1 2025 Results and Uncertain Outlook

Morgan Stanley analyst Michael Harleaux has maintained their neutral stance on 0HC0 stock, giving a Hold rating yesterday.

Michael Harleaux has given his Hold rating due to a combination of factors influencing Sandvik AB’s recent performance and future outlook. Despite maintaining some stability in margins amidst challenging conditions, Sandvik’s results for Q1 2025 were mixed, with notable misses in both orders and revenues. This underperformance raises concerns about potential slowdowns in deliveries and overall market demand.
Furthermore, the company’s guidance reflects heightened uncertainty, particularly in the SMM business, due to external events. The early signs of weakening in the short-cycle cutting tool business and increasing FX headwinds suggest that defending EBITA margins will become more challenging. Given these factors, Harleaux sees limited immediate upside potential for the stock, justifying the Hold rating.

According to TipRanks, Harleaux is a 3-star analyst with an average return of 6.3% and a 77.78% success rate.

In another report released yesterday, Redburn Atlantic also maintained a Hold rating on the stock with a SEK220.00 price target.