Aapeli has prepared a new company report following KONE’s Q3 results. 
KONE’s Q3 results were quite well in line with both our and consensus expectations, while received orders slightly exceeded expectations. The company’s current year guidance also remained practically unchanged, with the exception of a slight positive revision to the revenue guidance. Reflecting this, forecast changes also remained marginal. With the share price increase, we see the stock as fully priced and reiterate our reduce recommendation, but we revise our target price to 56 euros (previously 55 euros) due to our slightly increased forecasts.
Quoted from the report:
The background drivers for the guidance remained unchanged, as the key drivers for revenue, according to the company, are positive outlooks in maintenance and modernization businesses, as well as a solid order book. Corresponding drivers for profitability include growth in maintenance and modernization revenue and initiated efficiency programs. Pressure continues to come from new construction solutions in China, a slight decrease in order intake margins for 2024, and the limited impact of tariffs. Based on comments, however, the impact of tariffs has been quite minor.