Christoffer has written a pre-earnings report on Eltel ahead of the company’s Q2 report release next Tuesday. 
We are upgrading Eltel’s recommendation to “accumulate” (previously “reduce”) and raising our target price to 14.0 SEK (previously 13.8 SEK) ahead of the company’s Q2 report on July 21st. The upgrade is primarily due to the approximately 15% decline in the share price since our update at the end of June, which we believe has brought the valuation back to a more attractive level. Alongside this, we are slightly raising our forecasts for 2026–2028 to primarily reflect the recently announced contract wins in Finland worth 54 MEUR, while our Q2 forecasts remain unchanged. We continue to expect solid revenue growth driven by the Power segment and further improvements in annual profitability. In the report, we will focus on the sustainability of the turnaround in Norway, management’s qualitative market outlook, and comments on reaching its 5% adjusted EBITA margin target.