A little more than a year ago, Aspo released its value-creation strategy. One concrete step of the new strategy was taken this month, when the company announced the sale of its Leipurin segment on 15 August. The divestment price of Leipurin indicates a slightly higher EV/EBIT valuation than we have used in our SOTP analysis, but Aspo's short-term focus is now on profitability improvement. The long-term vision is still to form two separate companies, however weak industrial activity could make it hard for the Telko segment to reach the size and profitability needed for a demerger. Our estimates still point to a fair value range of EUR 6.3-7.7 per share, based on an equal weighting of our DCF, P/E and SOTP valuations. A successful strategy execution could erase the conglomerate discount, but it also needs a more favourable market environment to move closer to its financial targets.
LÄS MER
