Kempower has reported weaker than expected first quarter results, with a 24 percent decrease in turnover and an operating loss of 10 million euros. Despite this, the company’s share is becoming more attractive to investors, reflecting valuation coefficients. The average target price for Kempower is 29.71 euros, with recommendations favoring a buy. The current share price stands at 18.20 euros.
Insider analyst Pauli Lohi notes that Kempower’s expansion efforts, including establishing operations in North America and doubling its staff, impacted the result. Lohi argues that when considering the company’s expansion-related fixed costs, the valuation figures for 2023 are more favorable. Inderes predicts a decrease in result from expansion activities in 2024, leading to a higher ev/ebit number forecast for that year.
Inderes values Kempower highly due to its competitive position in the charging point market for electric cars, with high growth potential in the long term. The company’s target price is set at 28.00 euros with a buy recommendation. However, Kempower issued a profit warning in March and analysts expect another decrease in guidance for the year due to sluggish market demand for chargers expected to improve as the number and share of electric cars grow. The company is guiding a turnover of 360–410 million euros and an operating profit margin of 5–10 percent for the current year, with Inderes predicting a turnover of 343 million euros.
Moving from the First North list to the main list of the Helsinki Stock Exchange during the second quarter is an important milestone for Kempower. While analysts anticipate further challenges ahead, they believe that the company’s growth potential remains strong in the long term.
