Essity AB Class A shares declined 1.1% to 272 SEK in Stockholm trading, extending losses from an opening level of 273.5 SEK and briefly touching a session low of 271 SEK.
The slide followed a downgrade from UBS, which reduced its rating on the Swedish hygiene and health company to Sell from Neutral and lowered its price target to 235 SEK from 260 SEK. The bank cited an 11% year-over-year contraction in Essity’s EBITA and a 12% drop in net income in the most recent quarter as evidence of sustained margin pressure amid a difficult input-cost environment.
The company’s stock has traded within a 52-week range of 237 SEK to 292.5 SEK, with the recent peak at 292.5 SEK. Sweden’s OMXS30 index, which includes Essity, edged higher on the day, recovering modestly from a 0.6% decline in the prior session. U.S. equity benchmarks were little changed during the same period.
