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Analyytikko
Pääanalyytikko
Enedo published its H2 report on Friday. 2021 was a difficult year for the company, but the already completed and upcoming measures under the turnaround program should lay the foundations for a better tomorrow. However, the share price contains too much of this better tomorrow, and risks related to the turnaround aren’t sufficiently taken into account.
The new year is especially important for Enedo because the end of the turnaround program is in sight and at the same time various external challenges are easing up. Together, these factors should provide first indications of the underlying longer-term potential. However, the share price contains too much of this potential, and risks related to the turnaround are not considered sufficiently.
Enedo is currently carrying out a turnaround program that defines the future direction of the company. If the planned measures are successful and the company's own abilities are strengthened, we see significant longer-term potential for the company. However, the share price contains too much of this potential, and the risks associated with the turnaround aren’t sufficiently considered.
Yesterday, Enedo published a H1 report that fell behind our optimistic estimates. A sustainable turnaround takes a lot of work and the agenda for H2 culminates in building the operational foundation. The share price is high through many metrics and in our view, even an excellent turnaround doesn’t offer enough reward.
