Why Cheffelo (CHEF) Stock Is Soaring Today
What happened?
Cheffelo (CHEF) rocketed higher after issuing a trading update indicating significantly stronger-than-expected performance for Q3 2025.
Key highlights from the update:
Net sales are expected to jump ~23.3% year-over-year, driven by a large influx of new customers.
The operating loss is expected to improve by SEK 12 million, with a projected operating loss of only SEK 5 million (in what’s described as a seasonally weak quarter).
Investors interpreted the update as a positive signal that Cheffelo is gaining traction and narrowing losses, prompting aggressive buying into the stock.
What is The Market Telling Us?
Volatility & expectations: Cheffelo is a growth/small-cap story with inherent volatility. A swing on a strong trading update is not uncommon in such names.
Analyst sentiment: The company has lately been upgrading expectations and adjusting long-term targets. Some investors may be reassessing valuation based on accelerating scale and margin trajectory.
More research needed: CHEF continues to deliver improved results; before today’s updates, the market consensus for 2025E stood at SEK 63m (koyfin). We will likely see some upgrades to the actual EV/EBIT multiple, which will probably remain around 15x, and 2027E projects a multiple of about 12x. EBIT growth is expected to be 50% for 2025 and 20% for 2026, so while the share price is rising sharply, it's following the earnings expansion.
We need more visibility on the sustainability of growth momentum, but CHEF is undoubtedly an interesting company to follow.
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