Brothers Atte and Roni have published a new comprehensive report on Teleste. Like their other extensive reports, this one is also available for everyone to read. 
We reiterate Teleste’s “Accumulate” recommendation and €4.2 target price. The conquest of North America by Teleste’s Networks segment is progressing at a good pace, and with a clearly expanded customer base, future growth rests on broader shoulders. This year, uncertainty is mainly created by the merger of key clients Cox and Charter, which affects the timing of orders, but in the big picture, investments in DOCSIS 4.0 continue. In Europe, the market has picked up after previous caution, which Teleste is benefiting from thanks to its strong market position. New client relationships and efficiency measures taken in Public Safety and Mobility also support the continuation of profitable growth. Reflected against the earnings growth outlook for the coming years, Teleste’s valuation (2026e adj. P/E 9.5x) looks very moderate.
Quoted from the report:
Overall, Teleste is well-positioned to continue growing in both of its business segments in the coming years. With an improved cost structure, this growth should also scale to the bottom line, which the company’s financial targets also anticipate. With an improving earnings level, the company also has the potential to increase its dividend in the medium term, unless capital is allocated more heavily to areas such as acquisitions.
