Thomas has published a new company report on Tulikivi.
Tulikivi’s Q3 figures fell short of our forecasts, which had already been lowered following the profit warning, making the report a disappointment. In connection with the report, we made negative forecast revisions. As Tulikivi’s profitability weakens, the expected return on the stock increasingly relies on the Suomussalmi talc project, as the stock’s valuation picture based on our earnings forecasts only turns neutral (EV/EBIT: 9x) in 2026. We reiterate our target price of EUR 0.40 and our Reduce recommendation.
Quoted from the report:
In terms of the investment story, we believe the company is taking the right steps by expanding its distribution abroad and investing in its competitive product range. However, external factors appear challenging, as many of Tulikivi’s demand drivers are at anemic levels (consumer confidence, single-family housing starts, construction and retail confidence indicators), which may foreshadow a prolonged period of weak demand.