Hexagon: Lowering My Target After Q1 2026 (Rating Downgrade)

Hexagon AB (publ) faces mounting macro and operational challenges, prompting a downgrade to a Hold rating with a new price target of 90 SEK/share ($9.57 ADR). Gross margin compression, FX headwinds, and muted organic growth undermine the premium valuation previously assigned to HXBGY. The robotics initiative and Octave spin-off introduce heightened uncertainty and risk, with robotics removed from core financial targets.