We have revisited our investment case and concluded that Tikkurila’s turnaround from past challenges is on track and that there is much more potential left in 2020-21.
We have increased estimates and expect 2020E EBIT to grow by 23% y/y. The shares’ discount to peers has widened, but we expect that to reverse, driven by increases in consensus estimates and as more proof of a sustained recovery in earnings emerges.
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