Talenom

The stock's valuation is now extremely attractive through a sum-of-the-parts analysis but realizing this will require not only Easor's listing but also profitability improvements in international operations. Nevertheless, we believe the risk/reward ratio is very attractive. 

While Talenom's Q3 report contained many positive aspects, such as a clear improvement in cash flow and strong development in Spain, it revealed that the problems in Sweden are long-term. This was reflected negatively in the earnings estimates for the coming years, the sum of the parts, and the target price. In the short term, risks are elevated as a negative profit warning remains possible, and the goodwill related to Sweden could be called into question. Talenom still has a lot of potential, particularly in Spain, and its valuation is not high in relation to this. Furthermore, the upcoming separation of Easor is a potential value driver.