In recent news, asset management firm Capman has been removed from Inderes’ model portfolio. According to analysts, they believe that Neste’s challenges are manageable and short-term in nature. Known for its stock analysis, Inderes has made changes to its model portfolio, selling out Capman and adding Liquid in February.
Capman had been in the model portfolio since 2013 with a weight of four percent, but the valuation of the stock is now relatively neutral, prompting funds to be allocated elsewhere. The recent rise in interest rates impacted Capman’s business more than expected, leading to a lowered acceptable valuation factor. However, Neste was added to the model portfolio in February despite a subsequent 20 percent fall in its share price.
The analysts find Neste’s short-term challenges manageable and believe that they will resolve in the near future. They also see good potential for the company’s growth in the long term. The analysts justify the increase in Neste’s weight in the model portfolio due to its projected growth and dividend yield. With the sale of Capman, Inderes’ cash weight increased to 13 percent, which is considered low historically but offers opportunities for good stock picking on Helsinki Stock Exchange. The analysts plan to reduce cash weight further as opportunities arise for higher returns on investment.
For transparency purposes, Inderes reports on its model portfolio team and their trades regularly. Several team members have recently purchased shares of Neste stock while Capman only receives two analyst recommendations compared to Neste’s positive recommendations from multiple analysts including Inderes itself. The analysts believe that Neste’s growth potential will be reflected in its share price soon with an average target price set at €33.33 euros by different estimates from various analyst firms.
In summary, Inderes has removed Capman from its model portfolio after years of being present due to lowered acceptable valuation factors resulting from rising interest rates impacting their business more than expected. On the other hand, Neste was added despite a subsequent fall in share price due to short-term challenges being manageable while having good potential for long-term growth and higher dividend yields which are projected by many analyst firms including Inderes itself with an average target price of €33.33 euros set by different estimations by various firms
