JPMorgan upgraded Rockwool to Overweight, arguing the long-running bear case linked to Russia has now largely played out. Analyst Zaim Beekawa set a 250 Danish krone price target, pointing to about 18% upside. Shares in Copenhagen rose more than 2% on the news.

The upgrade follows a difficult period for the insulation maker, with its stock falling roughly 10% in 2025 due to guidance downgrades in North America and Russia, plus one-off costs. Russia's recent seizure of local assets is now viewed as a clearing event, removing a major overhang.

Beekawa expects lower earnings volatility and a renewed focus on stone wool products. He values Rockwool at 7.9 times EV/EBITDA, a 24% discount to its peer group. Management is likely to set a cautious 2026 outlook, targeting EBIT margins of 12-13%.

Looking ahead, the analyst flags higher capital expenditure over 2-3 years, potentially exceeding 10% of sales. Despite this, Rockwool’s low leverage should allow it to maintain shareholder returns. Investors will watch for confirmation in upcoming quarterly results.