Handelsbanken has reiterated its buy recommendation for Cloetta, despite the stock having risen by around 25 percent since November, and has simultaneously raised its target price to 48 kronor from 42 kronor, citing continued potential for multiple expansion as market sentiment improves.

The bank expects the dividend to increase to 1.30 kronor from 1.10 kronor and assesses that Cloetta's strong balance sheet provides room for further increases going forward.

Furthermore, Handelsbanken maintains that the company's target of a 12 percent operating margin could be achieved as early as this year once cost and efficiency programs are fully realized, and thus sees good opportunities for Cloetta to raise its targets in conjunction with the Q4 report on February 4.