Roni has written a comprehensive report on Pihlajalinna. Comprehensive reports are free for everyone to read, so there are no paywalls here. 
Pihlajalinna’s earnings turnaround in recent years has been impressive, but this year earnings are taking a step back due to expiring outsourcing contracts. After the current year, the headwinds from outsourcing will end, after which the company has the potential to return to organic growth and earnings growth. In relation to this outlook, we believe the valuation is very low (2026e adj. P/E below 9x and IFRS16 adj. EV/EBIT 8x), and the stock’s risk/reward ratio is very attractive, even though earnings development is moving in the wrong direction this year. We reiterate our EUR 17.0 target price and Buy recommendation.
Quote from the report:
Reaching revenue targets would, in our view, require winning market share in the coming years, for which the company’s strategy aiming for total cost-effectiveness may provide the tools in the current challenging market, where all major customer groups (insurance companies, corporations, and wellbeing services counties) are seeking cost savings. In our assessment, the profitability target is largely dependent on the revenue target, meaning its achievement requires growth to materialize. This naturally depends partly on how growth is achieved. If growth occurs within the current network and thus network utilization rates improve, this naturally has a direct positive impact on profitability. If growth were to come from aggressively expanding the network or through acquisitions, its scaling into profitability would not be straightforward.
