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Investing.com - Kepler Cheuvreux downgraded Wartsila Oyj Abp (HEL:WRT1V) stock rating from Buy to Hold while raising its price target to EUR20.00 from EUR18.00.
The downgrade follows a 30% increase in Wartsila’s share price since Kepler Cheuvreux’s previous upgrade in April after what the firm referred to as "Liberation Day."
Despite the higher price target, Kepler Cheuvreux now considers the stock fairly valued, basing its new valuation on 13x EV/EBITA for Wartsila’s core business.
The research firm expressed caution regarding Wartsila’s upcoming Q2 results scheduled for July 18, noting its expectations are below consensus primarily due to anticipated weak order and earnings momentum in the low-margin Energy Storage segment.
For Wartsila’s core Energy & Marine business, Kepler Cheuvreux expects the book-to-bill ratio to remain above 1x, indicating continued strength in that division.
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