Joni has published a company report on Solteq immediately after Q3.
We reiterate our Reduce recommendation for the share and lower the target price to EUR 0.45 (previously EUR 0.55), reflecting changes in forecasts. The company’s Q3 report was subdued and showed few bright spots. Solteq’s turnaround has progressed slower than expected, and there is a clear earnings warning risk for the current year. Furthermore, the refinancing of next year’s JVK loan threatens to be challenging again. The share’s valuation remains challenging, especially considering the uncertainty of the earnings turnaround and the high-risk profile caused by financial leverage. A positive view on the share would require a clear earnings turnaround and visibility into a healthier financial structure.