JPM Downgrades Essity, Cuts Target 12%

J.P. Morgan downgraded Essity AB to underweight, lowering 2027 price target to Skr215 from Skr245 (≈12% cut).
Analysts trimmed 2026 adjusted EPS to Skr17.46 (-4.2%) and 2027 to Skr18.33 (-5%), forecasting 4% full‑year COGS inflation.
Expected FY26 adjusted EBITA margin falls 100 bps to 13.1%, with full‑year EBITA Skr18.404bn, 5% below consensus.
Stock trades at Skr247 (14.1x 2026 EPS), down 14.1% YoY and 35.3% vs MSCI Europe; upside risks include demand and weaker USD.