Atte has published a new company report on Tekova following the release of the Q4 results. 
Tekova’s revenue grew even more strongly than our forecasts in Q4 as the company’s massive data center project progressed faster than we expected. Reflecting the order backlog recognized at a high pace last year and the company’s guidance, we have lowered our forecasts for the current year. Despite the changes, the valuation remains at a modest level, and the expected return consequently stays attractive. In addition to the modest valuation, the expected return is supported by a strong dividend yield. Following the forecast changes, we are lowering our target price to EUR 1.50 (previously EUR 1.65); our recommendation remains at Accumulate.
Quoted from the report:
Valuation does not require miracles. Despite the negative forecast changes, the stock’s pricing still appears attractive in our view. Based on our 2026 forecast, Tekova’s stock is valued at a P/E ratio of 8x, while the EV/EBIT multiple, which takes into account the significant net cash, is around 4x. Based on the current year’s forecast and our acceptable valuation (P/E: 8–10x, EV/EBIT: 6–8x), the stock still has upside potential. However, in our view, a more significant upside from current levels would require earnings growth to accelerate more strongly than we expect. On the other hand, a dividend yield of approximately 7% also supports the stock’s expected return in the coming years.