Here is a fresh company report on Eltel after Q4, prepared by Aapeli and Christoffer. The text has been translated into Finnish by an automatic translator; the report itself (PDF) has not been translated into Finnish. The report is in English.
We reiterate our Reduce recommendation for Eltel and our target price of SEK 7.20. The company’s Q4 report met our expectations at the group level and showed continued improvement in profitability and a reduction in indebtedness. Following recent large contracts, we have raised our revenue forecasts, which naturally also increased our profitability assumptions in absolute terms. However, in our opinion, this year’s multiples are high, and the expected risk-adjusted return over the next 12 months does not provide sufficient support for the share price.