Pauli has written a new extensive report on Merus Power, which is available for everyone to read, as are all extensive reports. 
Merus Power has grown strongly in recent years and has gained a significant share of the energy storage market in Finland. The industry is competitive and low-margin, but as scale increases, operational profitability also improves. A taste of the profitability turnaround and international growth in energy storage deliveries was seen during 2025, and we expect these themes to strengthen in the coming years. Assessing long-term profitability is still difficult for now, which increases the valuation risk. As the EBIT margin continues to improve, the stock could have significant value creation potential in a market supported by megatrends. We reiterate our Accumulate recommendation and target price of EUR 4.7.
Quoted from the report:
..We otherwise see it as possible that the company would strengthen its balance sheet more significantly in the medium term while pursuing strong growth in the next strategy period (e.g. larger deliveries in energy storage or more aggressive international growth). A stronger balance sheet would also expand the company’s options regarding new energy storage deliveries, including those where payment terms are not the best from a working capital perspective.
Success in the profitability turnaround during 2026 would strengthen the conditions for obtaining equity financing. Failure in the turnaround, on the other hand, could in a negative scenario lead to an unpleasant situation where the balance sheet would need strengthening, but the availability of equity financing would be poor and the company might have to accept significant dilution of the share capital in a share issue.
