Tommi and Antti have prepared a comprehensive report on EcoUp, which, like other comprehensive reports, is available for everyone to read. 
We reiterate our ‘add’ recommendation for EcoUp and our target price of 2.5 euros. EcoUp consists of Insulation and Technology business segments, which operate in the construction value chain. In the short term, the market turnaround in small-house construction will accelerate the growth of the Insulation business, and in the long term, both business segments are supported by circular economy and sustainable construction trends. The profitability improvement in the coming years makes the return-risk ratio attractive for a year out, even though the stock is neutrally valued in the short term.
Quoted from the report:
We forecast EcoUp’s revenue to grow by approximately 3–8% p.a. in 2028–2032, with an emphasis on the Technology business. Our terminal growth forecast is at the long-term growth assumption level of Finland’s and Europe’s GDP, at 2.0%. Due to the very weak predictability of the Technology business, the uncertainty associated with long-term forecasts is high, as the share of the Technology business in the group’s revenue increases over time in our forecasts. Thus, even significant forecast changes are possible in the longer term, as visibility into the commercialization of technology and the expected growth rate begins to clarify during the strategy period ending in 2026.
