AlphaValue/Baader Europe Begins Saab Coverage at Reduce Amid 'Limited' Upside to Valuation

07:51 AM EDT, 09/09/2026 (MT Newswires) -- AlphaValue/Baader Europe began its coverage of Saab (SAAB-B.ST) with a reduce rating and a price target of 593 kronor amid a "limited" upside to the valuation, noting that the Swedish defense group's operational opportunity is stronger than its current risk/reward. "The investment case combines exceptional backlog visibility, strong positions across weapons, sensors and sovereign platforms, and significant operating leverage as production scales. The issue is not the quality of the asset, but the valuation: our target price leaves essentially no upside despite incorporating a premium for Saab's superior growth profile," analysts said Tuesday. "Its strong growth profile and strategic positioning justify a premium, but that premium must also account for the capital intensity of the ramp-up, uneven divisional economics, milestone-dependent cash conversion and Saab's more limited geopolitical reach." The research firm identified the Dynamics and Surveillance segments as Saab's key growth and profitability drivers, highlighting both business areas as the "strongest" part of the group's equity story.