Railcare provides railroad (transport) services in Sweden. Its market is expected to grow supported by several long-term trends. Railcare has set financial goals for 2027 to grow revenue and improve its operating margin.

The share price developed strong in the first three quarters of 2024 based on the company results and analyst coverage that triggered growth in private investors. In the past 6 months the share price corrected due to lower margins and EPS.

Railcare is priced at around fair-value of 16x expected EPS for 2025. I think it is an interesting investment to monitor and increase below 24kr with 25% upside potential in the next two years. It is a defensive investment with 3-4% expected dividend yield that fits the current market climate.