BofA Ups Saab Price Objective Amid Expectations of Mid-term Growth Acceleration

09:26 AM EST, 01/05/2026 (MT Newswires) -- Saab (SAAB-B.ST) is expected to book 25.7 billion kronor in sales in the fourth quarter of 2025 and upgrade its organic topline growth guidance, prompting BofA Global Research to raise its price objective for the company. In a Monday preview note, the research firm changed the price objective to 569 kronor from 565 kronor, while reiterating the buy rating on the stock. "In our view, SAAB will likely raise its 2023-2027 organic topline growth guidance to roughly 20% (from 18%, BofAe at c.22%), supported by Gripen Colombia in Aeronautics, Arexis and Global Eye France in Surveillance, and two Swedish FMW A26 submarines for Kockums, driving strong order intake," analysts said as they also expect record order intake. "While 2025 will present a challenging order intake comparison, we expect strong commercial momentum in 2026 ... Notably, the recent GlobalEye order from France (SEK 12.3bn for two aircraft) implies a higher ASP versus Sweden's previous order. In our view, GlobalEye is margin-accretive within Surveillance, and as the mix shifts toward export contracts, this should drive further mid-term margin expansion." Meanwhile, analysts lowered their operating profit projections for 2025 to 2027 by between 1% and 2% on higher corporate costs, as well as their EPS forecasts for the three-year period. Operating profit estimates for 2028 and 2029, on the other hand, were raised by 1% on the back of stronger growth expectations in the company's surveillance and aeronautics segments. The Swedish aerospace and defense group is set to release its fourth-quarter 2025 results on Feb. 5, 2026.