From Thomas, a new company report on Piippo, which isn’t doing particularly well.
Piippo’s updated guidance predicts lower revenue than previously, but the underlying factors appear to be timing-related, and the operating profit level is still expected to improve from the comparison period. We made negative forecast revisions in conjunction with the report, but these were focused on the current year. In our view, the current share price does not price in the risks associated with the indebted balance sheet and weak earnings performance; consequently, we reiterate our sell recommendation. We maintain our target price at EUR 1.0.