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Third party research

Suominen: Operational disturbances in a tough market - Nordea

Suominen

This is a third party research report and does not necessarily reflect our views or values

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Following Suominen's profit warning on 15 October, we cut our estimates, which results in a slightly lower DCF- and multiples-based fair value range of EUR 1.3-2.0 (1.5-2.2) per Suominen share. While the company's cost-savings measures are contributing, the volume recovery after the US tariff announcements has been slow. In addition, the company has again faced production disruptions, which incurred additional costs in Q3. The new guidance implies only a modest profitability improvement for Q4, at best, which will likely leave leverage elevated. Under the new CEO, we expect the company to refresh its strategy to support growth and restore profitability.
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