BofA Updates Estimate for Volvo Group After Q2 Order Beat; Buy Rating Kept

03:45 AM EDT, 07/22/2026 (MT Newswires) -- BofA Global Research adjusted its earnings forecasts for AB Volvo (VOLV-A.ST, VOLV-B.ST), d/b/a Volvo Group, saying the Swedish truckmaker's stronger-than-expected second-quarter orders and European market growth set the stage for further upgrades. "Volvo's Q2 Truck orders beat cons by 18%, with N American orders more than doubling y/y and Europe & LatAm also improving. We were positively surprised that Volvo also upgraded its 2026 EU heavy duty market volume outlook (by 2%) despite mixed macro signals from the region," according to a Tuesday note. "In our view, this illustrates EU demand is increasingly well underpinned by the replacement needs of an ageing fleet." Volvo Group's truck order intake for the quarter was up 33% annually to 63,412 units, as orders rose by 15% in Europe and surged by 122% in North America. Accordingly, analysts lifted their market growth forecasts for the EU by 3% across full-year 2026 and 2027 and by 4% in the US for 2027. Consequently, the research firm raised its 2027 adjusted Industrial EBIT projection by 1%, putting its profit estimates 2% above consensus. The dividend-per-share forecast for 2026 and EPS estimates for 2026 to 2028 were also revised upwards. BofA still rates the stock at buy, with an unchanged price objective of 380 kronor, noting that it sees an "attractive" midterm outlook for the company that could support re-rating and positive revisions.