Research firm Inderes raises its recommendation for Ilkka to accumulate from reduce following the recent share price decline. The price target is reiterated at 4.0 euros.
Ilkka’s revenue increased by 2 percent to 9.2 million euros in the third quarter, while organic revenue decreased by approximately 3 percent. Adjusted operating profit fell to 0.8 million euros from 1.2 million euros, below the expected 1.0 million euros.
The company reiterates its forecast for unchanged or slightly higher full-year revenue, while operating profit is expected to deteriorate.
Inderes believes that the share valuation has become attractive despite the weak operational performance. Net asset value based on a sum-of-the-parts valuation is estimated at 5.8 euros per share, of which the holding in Alma Media corresponds to 4.6 euros per share.
