I’ve kicked off my own coverage of Reka. The operational business seems to be running consistently poorly, but the balance sheet-based valuation looks quite interesting.
There is about 20 million in net cash and about 30 million in the bank account, which could significantly impact the current share price level. Share buybacks would be good for the share price development. The market cap is only 26 million and the valuation level based on the P/B ratio is approx. 0.6, which feels quite low. Of course, it’s possible that the operational business won’t really head in a better direction in terms of results at any point and the money will just sit idle in the account. However, EV/EBIT 10-13 looks quite attractive for the coming years. Reka receives a Buy recommendation with a target price of 10.56 euros. Reka Industrial Oyj - Financial Summary and Valuation