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. The current share price stands at 18.20 euros.
Kempower’s expansion efforts, including establishing operations in North America and doubling its staff, impacted the result. Insider analyst Pauli Lohi notes 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.
The industry outlook for charging points for electric cars is strong, with Kempower positioned as one of the most competitive players. This has led Inderes to value the stock with high valuation coefficients and base the valuation on future profit growth. The company’s target price is set at 28.00 euros with a buy recommendation.
Kempower issued a profit warning in March, and analysts anticipate 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 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
