Kepler Cheuvreux cut Volvo’s rating from Buy to Hold on Tuesday, after the Swedish automaker’s shares slipped roughly 1.5% in Stockholm. Analyst Mats Liss argued that the recent rally leaves little room for further upside ahead of the Q4 earnings release on Jan. 28.

Liss now expects Q4 operating earnings to fall about 18% year‑on‑year to SEK 11.5 billion, driven by weaker truck deliveries, adverse currency moves and an unfavorable mix. Truck order intake is projected down 18% versus tough comparisons in South America and Europe, while cash flow stays seasonally strong, pushing net cash toward SEK 60 billion.

Kepler raised its target price to SEK 325 from SEK 285, citing higher sector multiples and a solid balance sheet. The analyst called Volvo’s construction‑equipment arm a “hidden gem” and noted the SDLG divestment could improve margins and spark a spin‑off. Investors will watch EPA‑27 rule impacts on Class 8 pre‑orders and the Jan. 28 results for clues on dividend adjustments.