Goldman Sachs cuts price target for Verisure to €13 (15), reiterates buy - BN

Verisure PLC reported Q3 2026 earnings with record margins and revenue growth. EBIT margin reached 27.7%, driven by volume and rate increases, despite higher acquisition costs. CEO Austin Lally and CFO Colin Smith discussed customer quality, attrition, and macroeconomic impacts, emphasizing long-term profitability and strategic investments in AI and partnerships.

Verisure Group reported Q3 2026 results with record margins (27.7%), 9% customer growth, and positive free cash flow for four consecutive quarters. Revenue rose 9.2% to €1,031 million, and adjusted EBIT increased 13.9% to €285 million. The company maintained strong customer retention (7.5% attrition) and highlighted its cash inflection point. The stock traded at $10.55 post-results, up from $10.50.

Verisure reported Q3 2026 results with ARR of €3,712m (+11.8% y/y), Adjusted EBIT of €285m (+13.9% y/y), and Free Cash Flow of €59m. Customer base grew 9.0% y/y to 6.5m. The company expects 2026 ARR growth of 9.0%-9.5% and Adjusted EBIT margin around 26.5%. CEO Austin Lally highlighted strong profitability and cash generation.

CVC Capital Partners is considering a potential take-private bid for Verisure, less than a year after its €13.7 billion IPO. Verisure's market value has since fallen to €9.7 billion, with shares down over 33% this year. Hellman & Friedman, the largest shareholder, could exit its 43.62% stake if a deal materializes. No offer has been made, and CVC declined to comment.

Verisure Plc's stock rose 12% to 10.49 after reports that CVC is considering a potential offer to take the company private. The stock had fallen from its IPO price of 13.25, and analysts' average price target is above current levels. Hellman & Friedman owns 43.6% of Verisure. The broader market is down, contrasting with Verisure's surge.

Verisure PLC reported Q2 2026 earnings call highlights, citing record ARR growth. CEO Austin Lauley said new installations were slower amid a choppy consumer backdrop, especially in Latin America, but volumes were 219,000 and portfolio grew 9.4% YoY with stable attrition at 7.5%. CFO Colin Smith noted adjusted EBIT margin outlook above 26% and EUR10m rebrand spend in Q2.