Kaisa has released a new comprehensive report on Aspocomp. 
Aspocomp’s direction has taken a clear turn for the better, driven by the semiconductor industry and the defense sector. The order book is at a historical high, the financial position has recovered, and the Oulu investment program, if successful, will create the foundation for the next growth phase. We expect earnings to make a clear upward level correction in the coming years, but in our view, a significant part of this development is already priced into the stock. There is potential for both earnings and the share price to go higher, but at the current price, relying on earnings growth does not, in our opinion, offer sufficient compensation for the high forecasting risks. We reiterate our Reduce recommendation for Aspocomp but raise our target price to EUR 5.0 (prev. EUR 4.7) following slight estimate increases and a lowered required rate of return.
Quote from the report:
In previous updates, we emphasized that the key value drivers for Aspocomp were proving the earnings turnaround and stabilizing the financial situation. The company has taken clear steps forward in these areas, as the balance sheet has strengthened, the order book is at a historical high, and demand in the main segments has remained strong. However, the next phase of value creation relies above all on the continuation of the earnings improvement, the clearing of the historically low-margin order book, and the successful implementation of the Oulu investment program.
