Pauli Lohi has prepared an extensive report on Apetit.
Apetit is a leading Finnish food company in frozen vegetable production and oilseed processing. The acquisition of the loss-making pea business in Sweden has weakened earnings and increased the risk level, although it also offers more growth potential than before. In our view, the share’s current valuation is based on the assumption that both the Swedish pea business and Oilseed Products will achieve a significant turnaround. The turnaround depends partly on factors such as harvest success and market developments, which limits visibility and increases forecast risks. We await more evidence of progress in the turnaround, but for now, the valuation is very challenging, which is why we reiterate our Sell recommendation and target price of EUR 11.