Norwegian brokerage firm Pareto has reiterated its "hold" recommendation and maintained its target price of SEK 165 for fashion giant H&M, according to a recent commentary.
Pareto anticipates organic growth of 1.4 percent in the fourth quarter, while gross margin is expected to rise by 120 basis points and EBIT by 18 percent.
For 2026, the research firm forecasts organic growth of 2.2 percent, a further 110 basis points of margin expansion, EBIT growth of 19.5 percent, and an operating margin of 9.1 percent.
With a valuation at 19.8 times 2026 EV/FCF and 19.7 times 2026 P/E, Pareto believes that the positive momentum is already priced in.
