Atte has written a new comprehensive report on Honkarakenne. 
As usual, this comprehensive report is available for everyone to read.
In our forecasts, Honkarakenne’s 2026 is still largely turning into a transition year as the domestic market remains challenging. We forecast the company to reach more significant earnings growth in 2027–2028, as export investments materialize more strongly into deliveries. Additionally, we expect the domestic market to recover gradually. In the current year, the modest earnings level pushes valuation multiples very high. Looking toward 2027 with our forecasts, however, the multiples neutralize roughly within an acceptable valuation range. Due particularly to uncertainties related to success in exports, the risk/reward ratio is, in our view, still unfavorable. On the other hand, the strong balance sheet continues to act as a buffer in a weaker scenario. We maintain our target price at EUR 2.7 and our recommendation at Reduce.
Quoted from the report:
Turnaround story is still seeking concrete evidence
As the current year remains largely a transition year, we emphasize our 2027 forecasts in our valuation. The stock’s valuation finds no support from our updated current-year forecasts, as earnings remain weak. In our view, Honkarakenne’s valuation level in the coming years is reasonable, considering the significant earnings improvement we forecast from the bottom of the cycle. However, the risk-adjusted expected return remains weak, given the uncertainties related to the turnaround regarding the domestic market situation, the company’s success in export trade, and the realization of targeted cost savings. Upside potential exceeding our expectations over the next year would require a stronger turnaround in both the domestic market and exports than we forecast. On the other hand, we believe the company’s strong balance sheet position continues to limit significant downside risk.
