NKRKF - Nokian Renkaat: Upside Left With Gradual Earnings Recovery

2024-02-08 22:02:46 ET

Summary

• Nokian Renkaat has faced significant challenges after exiting its manufacturing operations in Russia.
• To recover the company's manufacturing capacity, Nokian Renkaat is building a new factory in Romania, with commercial production expected to begin in 2025.
• The investments in new capacity are accompanied by targets for a gradual revenue recovery and stronger margins.
• The targets seem to provide a good amount of upside for investors, as my DCF model estimates significant upside for the stock.

Nokian Renkaat ( NKRKF ) manufactures tires with three segments – Passenger Car Tyres offering summer & winter tires for cars, Heavy Tyres offering tires for machinery for forestry, agricultural, and industrial purposes, and Vianor offering passenger tires....

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