Translation: Original published in Finnish on 6/29/2026 at 8:00 am EEST.

Biohit's share price has fallen during the beginning of the year, as part of the global repricing of growth stocks in the sector. There has been no significant news from the company or the industry in the early part of the year, so we estimate that the share price decline directly and positively impacts the risk/reward ratio. We maintain our forecasts, which include moderate growth for the current year, and reiterate our target price of EUR 3.5. We raise our recommendation to Buy. 

Early-year news flow brought positive news from Chile

In April, the company reported research results showing that the use of the GastroPanel test for treatment needs assessment (triage) led to an 87% reduction in endoscopy waiting lists in Molina, Chile. The results are related to Biohit's previously communicated Chilean pilot program, which has also seen commercial progress. As a result of the pilot, Chile adopted a diagnostic test based on GastroPanel to prioritize patients for further examinations as part of Chile's national cancer prevention program. The commercial significance of the program for Biohit is still difficult to specify. We believe the project is already in full swing, so concrete figures on commercial progress may be available in August in connection with the H1 report. We commented on the news earlier here. Similar pilots are underway in Chile's neighboring countries, which could bring further opportunities for Biohit in the relatively near future.

Expectations for current year are at a moderate level

Biohit's guidance for revenue growth for the current year is 5–10%, which is quite clearly below the company's strategic target (15–20%). The guidance is also cautious compared to previous years of the strategy period. According to the company, the moderate guidance is due to the slower-than-expected progress of GastroPanel validations and implementations, and the future cessation of license revenues from China. Our forecast for 2026 revenue growth is +8%. Our estimate is based on the normalization of the Middle Eastern market and the increased use of GastroPanel in Chile's national screening program. Biohit suspended deliveries to the Middle East market, which is important to the company, in late 2024. Deliveries were practically suspended in H1’25. According to the company, delivery volumes recovered to half of normal during H2’25. The company has not commented on the potential effects of the war in Iran on the situation.

We expect profitable growth in the coming years

For the coming years 2027–28, we forecast revenue growth of 10–14%. We expect EBIT to continue growing to 3.3 MEUR by 2028. Our earnings forecast is based on revenue growth and continued tight cost control. We see the sharply increased trade receivables from China as a key risk. In our view, there are uncertainties related to the repatriation of receivables, even though assessing the situation from the outside is challenging.

Valuation remains on the attractive side

The share's P/E multiple based on 2026 estimates is 17x. The 2026 EV/EBIT multiple of 11x, which takes into account the strong balance sheet, is attractive in our view, even though the uncertainty of the forecasts is high. The multiples are clearly below those of global large-cap diagnostics peers (2026 EV/EBIT 17x). We believe the discount is justified despite Biohit's higher risk profile. The gap to peers has widened significantly due to the decline in Biohit's share price. In our view, the stock is also cheaply priced in terms of EV/S (2026 EV/S: 1.8x) and cash flow, and the valuation includes a safety margin. Thus, we believe the risk/reward ratio is attractive.