02:23 AM EDT, 05/19/2026 (MT Newswires) -- BofA Global Research maintained its investment case for Hexagon AB (HEXA-B.ST), citing growth drivers including potential upside from artificial intelligence and its status as the only listed European humanoid original equipment manufacturer.

"We reiterate our Buy rating on Hexagon, with a [price objective] of SEK120 (US$12.55) derived from a SotP valuation. Our view is based on three pillars: 1) Post Octave spin-off and management changes, Hexagon is now more focused and transparent, allowing it to accelerate sales growth and manage cost efficiently. 2) We do not see Hexagon being pressured by AI as the share price [year to date] suggests, and believe it is insulated with potential to gain from higher efficiencies. 3) Hexagon is the only listed European humanoid OEM, and our DCF suggests the humanoid business could generate additional equity value, creating optionality for shareholders. As a result, our 27/28e EBIT1 estimates are c3/5% above consensus,"according to a Monday note.

Amid a 30% valuation derating in the software industry due to AI, analysts believe the Swedish measurement technologies company's industrial software is "well insulated"due to its integration with proprietary hardware data and exposure to mission-critical, risk-averse industries. The research firm views AI as a potential opportunity to streamline research and development expenses and bolster market positioning. Consequently, BofA projects AI-driven efficiencies to support 20 basis points of annual EBITA margin growth for the group.

Against this backdrop, the research firm also raised its EPS projections for full-year 2026 to 2028 to $0.44, $0.53 and $0.65, respectively, from $0.32, $0.51 and $0.62.