According to preliminary data released by Solwers on Saturday, the company's final quarter of 2024 has been weak earnings-wise. We believe some of the factors behind this weak development are related to a rather weak operating environment and, therefore, probably temporary. On the other hand, recent economic news flow does not support expectations of a rapid recovery in market activity.

Solwers' Q3 figures came in below our forecast, which we believe reflects sluggish market conditions and, to some extent, higher-than-expected seasonality.

The expansion, which is still in the planning stage, will begin with the establishment of a subsidiary in the country, while potential acquisition targets in the region are also explored.

The H1 results published by Solwers on Friday were slightly below our forecasts, but this was mainly due to non-recurring items. We have made only minor downward revisions to our organic forecasts, while also taking into account the recent acquisitions. Against this background, the overall changes made to our forecasts were not large. In our view, the stock has clear upside, provided the company manages to improve its balance sheet efficiency and execute successful acquisitions in line with its strategy.