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Talenom's Finnish core business continues to reliably generate strong cash flow, but investors doubt the sensibility of international growth. Profitability turnarounds in Spain and Sweden could also reverse the share price development.
We find the pricing still seems reasonable, considering our significantly raised earnings estimates and the expectation of substantial earnings growth.
We raise our target price for Scanfil to EUR 12.50 (was 11.50 €) on the heels of slightly increased long-term growth estimates. Following the robust progress of the share price over the past year, the positive earnings growth projected in our forecasts has already been factored into the share. In our view, this narrows Scanfil's short-term expected return, even though the long-term story remains quite attractive.
The European Central Bank's interest rate decision on Thursday was expected. The central bank raised its key interest rates by 25 basis points, bringing the deposit rate to 2.25%.
Solwers announced on Tuesday that its subsidiary, Finnmap Infra, had been selected alongside Sweco to draw up the general plan for the East Railway section between Porvoo and Koria.