Christoffer has published a new company report following Eltel’s Q1 
Eltel’s Q1’26 report clearly exceeded our forecasts for both the top and bottom lines, indicating that the turnaround is not only remains intact but is progressing faster than we predicted. Although Q1 is seasonally the quietest period, Eltel achieved 11% organic growth and a stronger-than-expected improvement in profitability, supported by strong execution in the Finnish Power segment and maintained profitability in Norway for the third consecutive quarter, further confirming the unit’s ongoing turnaround. Management reiterated their confidence in reaching the 5% adjusted EBITA margin target within the previously announced 12-18 month timeframe, and the strong Q1 result reinforced this conviction. While this is encouraging, we remain more cautious and believe that Eltel must prove that the 5% target is achievable within management’s schedule. However, we are raising our 2026-27e earnings forecasts following the report, primarily reflecting the stronger-than-expected Q1 performance. At the current valuation, we continue to see good risk-adjusted return potential and reiterate our Accumulate recommendation with a target price of SEK 11.2 (was SEK 10.2).