Aapeli has also prepared a new company report on Kesla after its Q3 results.
Kesla’s Q3 result fell clearly more than our forecasts into loss, driven by low revenue. In addition, the company’s received orders remained at a weak level, and in our opinion, no significant signs of improvement are visible in the short-term market outlook. Reflecting this, we lowered our forecasts for this and next year, while our longer-term forecasts remained almost unchanged. With our forecasts, we believe it is difficult to find support points for the stock’s short-term valuation, which, combined with the elevated risk level of the financial position, makes the stock’s risk-adjusted return expectation very weak. We therefore reiterate our sell recommendation for the stock and lower our target price to 2.2 euros (previously 2.4 €) in line with the forecast changes.