• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

EQT AB shares slip after Q3 results flag cautious optimism

by October 18, 2024
written by October 18, 2024

Investing.com — EQT AB ‘s (ST:EQTAB) shares were down on Friday following its third-quarter results, despite the company’s cautious optimism.

At 6:46 am (1046 GMT), EQT AB was trading 4.6% lower at SEK 317.10.

The company’s fee-paying assets under management (AUM) remained steady at €133.6 billion compared to the previous quarter and showed a 4% increase year-over-year. 

The company posted gross inflows of €3.2 billion during the third quarter, boosted by closed-out commitments from its Infrastructure Fund VI, which has reached €16.9 billion in commitments. 

EQT anticipates that active fundraising for this fund will conclude in 2024, aiming for a final close in the first quarter of 2025 with a target size of €20 billion.

“While we are constructive on the medium-term growth outlook, we have consistently argued that downside to consensus EQT PRE estimates means EQT shares carry the greatest risks of earnings downgrades across our coverage of European alts,” said analysts from Citi Research in a note. 

The company reported a total of €6 billion in investments and €3 billion in exits, indicating a recovery in activity levels compared to previous periods. 

Value creation for the quarter stood at 4%, although the multiple on invested capital for all but one key fund remained unchanged. BPEA VIII, the predecessor to the current fund, is now 70-75% invested, while BPEA IX is targeting $12.5 billion with its first close expected in the first half of 2025.

Despite an ambitious €100 billion fundraising target for the upcoming cycle, the brokerage did not provide a specific timeline for achieving this goal. 

Analysts from UBS flagged that the current fundraising cycle is nearing its conclusion, with the final close of Infra VI expected to be a protracted process, taking more than two years since its initiation in December 2022. 

The exit outlook remains cautiously optimistic, with a noted strong pipeline of potential realizations, though the broader market conditions and buyer confidence are still a concern, particularly as the initial public offering market continues to recover.

EQT did not revise its outlook or guidance significantly, which has raised concerns among analysts regarding potential delays in the anticipated launch of EQT XI, potentially pushing it from 2025 into 2026 without a meaningful increase from the previous fund’s €22 billion. 

“Nor is there any comment (nor did we expect) on carried interest generation,” said analysts at UBS.

The year-end results, anticipated on January 23, 2025, are expected to be a more significant catalyst for the company’s shares, as per UBS.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
India stocks higher at close of trade; Nifty 50 up 0.42%
next post
Earnings call: CMC reports solid fiscal 2024 despite market challenges

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 5, 2025
    • This California startup is cleaning water and removing CO₂ from the atmosphere — all at a reduced cost

      June 5, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (504)
    • Stock (6,426)

    Latest News

    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

    Popular News

    • Blue Origin’s New Glenn rocket lifts off from Florida in debut mission
    • Gold & Silver Analysis: Key Levels & Trendline Insights

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy