OP upgrades its recommendation to BUY and reiterates its target price of €2.8.
“Raisio published a mixed Q2 report, with sales falling slightly short of forecasts, but profitability continuing to improve faster than expected. In addition, the company changed its reporting structure to align with the new strategy and appointed a new Head of M&A. In our view, the company’s growth relies heavily on corporate acquisitions, which can serve as a strong value driver in the coming years. Forecast changes remained moderate, due to which we maintain our target price at €2.80. Due to the increased return potential following the share price decline, our recommendation rises to BUY (previously ADD).”