New coverage company, extensive report freely available for everyone: KPY Seurannan aloitus: Strategiamurroksen keskellä onnistuneesti pörssiin - Inderes
- KPY is transitioning from a traditional balance sheet investor toward a hybrid of a balance sheet investor and a fund manager, which offers growth potential but involves significant risks, particularly in fundraising and the Kuopio office market.
- The company’s investment portfolio is currently concentrated in Kuopio office real estate, but in the future, KPY aims to expand into infrastructure funds and execute a controlled exit from balance sheet investments.
- KPY’s stock valuation has sunk to a very low level (P/NAV 0.46x), which makes the expected return attractive for a patient investor, but narrowing the discount to NAV requires proof of scaling private equity operations and maintaining the profitability of Novapolis.
- We initiate coverage with a target price of EUR 5.10 and an Accumulate recommendation, estimating the value per share to be €7.42 without an investment company discount and €5.57 with the discount.