OP’s analysts chose new favorites from the stock exchange – 4 stocks from Helsinki are on the list

OP: n analysts listed their new favorite stocks for the coming half year. Four companies from the Helsinki stock exchange ended up on the list.

Analysts’ new favorites among the large companies on the Helsinki Stock Exchange are asset managers Commandmentmachine shop Traininga developer of software tools Qt Group and housing investor Kojamo. On the other hand, foreign stock favorites are Adidas, ASML, Caterpillar mixed Johnson & Johnson.

“We now favor companies that, due to strengthening demand, have the prerequisites for clear earnings growth in 2025, an attractive valuation level relative to the outlook, or a significant potential for profit distribution”, OP’s chief analyst Antti Saari explains in the announcement.

In Mandatum, the justification is especially the dividend. Based on forecasts, the Helsinki Stock Exchange’s dividend amount is going to be high this spring despite a weak stock market year. According to Saari, while waiting for investment demand to pick up, Finnish investors can enjoy hefty dividends.

Mandatum’s predicted dividend yield of 7.7 percent is at the top of the stock market.

Qt Group, on the other hand, is attracted by the prospect of growth. According to Saari, digital screens designed with the company’s software are quickly becoming common in many different industries.

The consensus of analysts gathered by Factset expects QT to see a revenue growth of around 17-19 percent in the next few years. In January, the company lowered its guidance, and according to the new guidance, growth in 2024 will fall to 15–16 percent.

In the long term, QT has said that it is aiming for 20–30 percent annual revenue growth.

In Valmet, OP’s analysts are attracted by the acceleration of investment demand. Saari points out in OP’s press release that an increasingly large part of the company’s turnover is made up of stable maintenance and automation business.

Analysts’ consensus expects Valmet’s turnover and profit figures to increase, but new orders are expected to decrease from the expected high level of 2024. Based on forecasts, the share also offers a dividend yield of over five percent.

Of the four stock selections, Kojamo’s price in particular has fallen as the housing market slumps. Some of the investors wondered if the stock could be used to bet on the improvement of the housing market when interest rates fall.

Based on the consensus collected by Vara Research, analysts expect Kojamo to see moderate but steady growth in turnover and net rental income in the next few years.

The return on the US stock market has dwarfed the returns on the Helsinki and other European stock exchanges in recent years. According to OP, a good stock portfolio is created by combining stocks from the United States and Europe. When it comes to the Helsinki Stock Exchange, it’s not worth hitting the gloves on the counter with the OP.

“The most urgent investors are now considering whether it makes sense to invest in domestic companies at all. We think so, and it’s not worth drawing too hasty conclusions after a couple of years. Weak periods lasting a couple of years have been seen in most stock exchanges, and after these low periods, it has not been the right place to press the sell button”, Antti Saari sums up in the press release.