A question for management and the board: at these levels, wouldnât it be better to initiate a share buyback program rather than paying out dividends? 
2 Likes
Here is the company report from Frans following the Q4 results. 
Ovaroâs Q4 result was overall in line with our expectations. The uncertainty regarding the Hervanta project materialized, at least for now, but otherwise the project comments were positive. In particular, the significant Teollisuuskatu project in Kuopio looks promising and could start as early as Q2. The companyâs guidance points toward earnings growth and was slightly stronger than our expectations. We slightly raised our earnings forecasts. However, predictability is weak in the short term, and earnings development depends heavily on the initiation of projects. With a low valuation (P/B 0.62x) and the potential of the project pipeline, we still see the risk/reward ratio as positive. The expected return is supported by a 4% dividend yield and the option for continuous balance sheet optimization. We reiterate our target price of EUR 3.70 and our Accumulate recommendation.
3 Likes
Here are Fransâs comments as Ovaro has acquired a plot in the center of Levi for an approximately 8 million euro real estate development project, which will involve a 12-unit holiday apartment accommodation project.
4 Likes
Frans has made a new company report on Ovaro
We are downgrading Ovaroâs recommendation to Reduce (previously Add) and lowering our target price to EUR 3.30 (previously EUR 3.70). The escalation of the Middle East crisis has raised inflation expectations, which has sharply increased interest rates. The rise in interest rates strikes at the core of Ovaroâs strategy, which relies on recycling the balance sheet and initiating new projects. This is particularly emphasized in a very subdued new housing market, which has increased forecast risks for the coming years. A low balance sheet-based valuation (2025 P/B 0.58x) provides security for the stock in the current uncertainty, but we believe that with our changed forecasts, the stockâs expected return will fall below our cost of equity (12%) in the short term.
3 Likes
The fitness center Fressi will move into Ovaroâs premises at Vapaudenkatu 40 in the center of JyvĂ€skylĂ€ with a long-term lease agreement.
This particular JyvÀskylÀ Station Square (Asemaukio) is being transformed into a new marketplace, which is aimed to be in use by the end of 2027.
https://www.jyvaskyla.fi/tyo-ja-yrittaminen/luvat/torit-ja-myyntipaikat/asema-aukion-tori
3 Likes