Kempower reported a weaker than expected first quarter result, with a 24 percent decrease in turnover and an operating loss of 10 million euros. Despite this, analysts are starting to see the company’s share as attractive, reflecting valuation coefficients. The average target price is 29.71 euros, with recommendations favoring a buy.
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.
Kempower issued a profit warning in March, and analysts anticipate another decrease in guidance for the year. This is likely due to sluggish market demand for chargers, expected to improve as the number and share of electric cars in the market grows. 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 a key milestone for Kempower. Analysts anticipate further challenges ahead but believe that the company’s growth potential remains strong in the long term. With high valuation coefficients based on future profit growth, Inderes values Kempower’s stock at 28
