Pareto cuts H&M target to SEK 135. H&M stock sits 12.08 percent above its low

Published on 10/21/2026 at 10:20 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

September sales were expected to rise 1 percent. H&M stock costs EUR 15.54 on October 21, 2026 within its 52-week range of EUR 13.87 to EUR 18.16.

Profitability and target debate

Pareto Securities cut its H&M target to SEK 135 from SEK 140 on September 25, 2026.
Third-quarter operating margin reached 10.60 percent versus 8.60 percent in the prior-year quarter.
H&M stock traded at EUR 15.54 at 10:13 a.m. CEST at Lang & Schwarz on October 21, 2026.
Operating cash flow reached SEK 26,524 million in the first nine months of fiscal year 2026.

H & M Hennes & Mauritz AB, SE0000106270, Illustration mit AI erstellt.

H&M (ISIN SE0000106270) stock was trading at EUR 15.54 at Lang & Schwarz on October 21, 2026 at 10:13 a.m. CEST. The quote stood 12.08 percent above the 52-week low of EUR 13.87 as of October 20, 2026. Placera reported on September 25, 2026 that Pareto Securities cut its target for H&M from SEK 140 to SEK 135, while Santander raised its target from SEK 184.50 to SEK 187.10.

Analyst targets split after results

The opposing target moves followed H&M's nine-month report. Pareto retained a sell rating, while Santander retained a neutral rating, giving investors two distinct readings of the same earnings release.

H&M Group said on September 24, 2026 that third-quarter net sales rose to SEK 57,189 million from SEK 57,017 million. Operating profit increased to SEK 6,037 million from SEK 4,914 million, while the operating margin reached 10.60 percent from 8.60 percent.

What does margin improvement mean?

The margin gain was the clearest strength in the report, but the sales advance remained limited to 1 percent in local currencies. H&M also expected September sales to increase 1 percent from the prior-year month, keeping revenue momentum below the pace of profit growth.

The nine-month numbers show the same split. Sales fell to SEK 161,624 million from SEK 169,064 million, while operating profit rose to SEK 13,462 million from SEK 12,031 million. Operating cash flow increased 17 percent to SEK 26,524 million, supporting the case for tighter cost control even as demand remains the central test.

Three dated signals for H&M

On September 24, 2026, H&M reported third-quarter operating profit of SEK 6,037 million and an operating margin of 10.60 percent through its official release. On September 25, 2026, Pareto Securities cut its target to SEK 135 from SEK 140 and Santander raised its target to SEK 187.10 from SEK 184.50, according to Placera. On October 20, 2026, The Daily Star, citing Reuters, highlighted that third-quarter operating profit exceeded the LSEG analyst forecast of SEK 5,140 million.

Stock stays within its yearly band

For investors, the key tension is visible in the figures: profitability improved faster than sales, while analyst targets moved in opposite directions. H&M is listed on Nasdaq Stockholm, and the current euro quote remains between the dated 52-week low of EUR 13.87 and high of EUR 18.16.

H&M stock price in euros

H&M stock was trading at EUR 15.54 at Lang & Schwarz on October 21, 2026 at 10:13 a.m. CEST. Its position was 12.08 percent above the 52-week low of EUR 13.87, based on the October 20, 2026 market range. The further course of trading is shown by the continuously updated real-time quote of H&M stock.