Analyst: Volvo's market may start to recover next year.

Citigroup analysts Klas Bergelind and Siron Ng wrote that the market has not fully recognized the favorable factors of Volvo's growth and profit margin, and that its truck and construction equipment end markets may begin to recover during the period 2026. The bank believes that by the second half of 2026, Volvo's EBITDA will be more than 15% higher than the market average expectations, and more than 10% higher by 2027. In terms of the truck business, Citigroup believes that there is room for profit margin growth from next year and will gain some market share. In the construction equipment business, the bank believes that the rate cut in the United States should support growth, and that the outlook for Volvo's European business in 2026 is likely to be revised upwards. The bank forecasts a fourth quarter group EBITDA margin of 9.1%, which will be the low point of this cycle. The bank has upgraded its rating from neutral to buy and raised its target price for the stock from 242 Swedish Krona to 328 Swedish Krona.