e.l.f. Beauty stock plummets 20% as revenue and guidance fall short of expectations
Investing.com - Kepler downgraded Netel stock rating to Hold from Buy on Wednesday, citing weaker performance and deteriorating market conditions that prompted the company to cut its 2025 guidance.
The Stockholm-based research firm significantly lowered its 2025-2027 estimates for Netel, with adjusted EBITA projections down 50-70% from previous forecasts. Kepler established a new fair value of SEK5 per share, approximately in line with the current share price following recent weak trading.
Netel shares fell 7% following the rating downgrade, as investors reacted to concerns about the company’s financial outlook. The infrastructure services provider has faced challenges with lower expected volumes that have impacted its performance projections.
Kepler analysts expressed concern about Netel’s ability to generate meaningful cash flow in the short term. The firm also highlighted additional financial risk stemming from the need to renegotiate long-term financing after Netel breached covenants at the end of the third quarter.
The downgrade comes as Netel grapples with broader market headwinds that have forced the company to revise its business expectations downward for the coming years, prompting Kepler’s more cautious stance on the stock’s prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.