Nokian Tires stock has garnered mixed reactions from analysts, with some predicting good returns over the next few years while others have expressed disappointment in the company’s recent results. Inderes analyst Rauli Juva gave a “buy” recommendation for the stock, citing potential for upside especially with the upcoming full production at the new Romanian plant in 2027-2028. However, Bloomberg’s consensus recommendation from 17 analysts is “hold,” reflecting the range of target prices for the stock that vary from six euros to ten euros.
Despite challenges in production and external events like the Red Sea crisis and political strikes in Finland, Nokian Tires is working towards improving profitability and increasing volume in its business. While operating results at the beginning of the year fell short of analysts’ forecasts, there are expectations for a stronger performance in the future, particularly during the winter tire season. Some analysts believe that improvements may not be realized until after new production facilities are completed in 2026-2027.
Juva emphasizes that current valuation levels offer reasonable expected returns for investors but it remains to be seen how quickly investors will price them into their valuations. On the other hand, Oddo analysts have taken a more cautious stance on Nokian Tires stock and recommended a “sell” rating with a target price of seven euros. They believe that challenges still lie ahead and that improvements may not be fully realized until after new facilities are completed. Additionally, they raise concerns about high valuations compared to peers which could impact future earnings premium pricing
