Here is a company report from Joni after the downgrade.
We lower Vincit’s target price to EUR 1.35 (previously EUR 1.45) and reiterate our reduce recommendation for the stock. Vincit issued a feared profit warning regarding profitability, which reinforces the picture of the company’s challenging situation. It would be important for the company to stabilize its revenue, but this has proven challenging, and there is no significant market tailwind in sight yet. Thus, in our view, it is critical for the company to initiate new efficiency measures to bring profitability to at least a satisfactory level. The stock’s valuation is tight, although there is potential if a turnaround succeeds, but the risk-reward ratio is not currently attractive.