NKRKF - Nokian Renkaat: Still A Speculative 'Buy' But With Some Potential

2024-06-19 01:39:35 ET

Summary

• Nokian Renkaat faced significant challenges after losing access to Russian inputs, leading to a need to rebuild manufacturing capacity.
• Despite challenges, Nokian Renkaat has shown potential for improvement, maintaining dividends and slowly rebuilding manufacturing and sourcing capacities.
• Analysts have mixed views on Nokian Renkaat stock, with some recommending a "BUY" due to potential upside, while others are more conservative.

Dear readers/followers,

Covering formerly Russian-supplied companies like Nokian Renkaat ( NKRKF ) ( NKRKY ) is tricky. The company/companies obviously crashed down quite significantly when access to Russian input collapsed. In some cases, with companies that actually had their manufacturing and sourcing capacity in Russian locations, the hit was far worse. Such was the case for Nokian Tyres, which essentially faced an existential situation where they were forced to rebuild part of their manufacturing base.

This is also the situation and the process in which they currently are. The company is slowly improving its fortunes and has made progress in rebuilding its manufacturing and sourcing capacities. Despite its current challenges, Nokian Renkaat has maintained its dividend and shows potential for improvement in the future. The fact that the dividend is maintained, and the company is driving things upward seems to be a clear case of potential undervaluation and investment upside....

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