We raise our recommendation for Koskisen to Accumulate (was Reduce) and our target price to EUR 8.25 (was EUR 7.50), reflecting a moderate increase in estimates and a slight decrease in the required return. Koskisen's Q1 report was significantly better than we expected, especially thanks to excellent volume growth in the Sawn Timber Industry. We didn't make any big changes to our near-term forecasts for the lower lines of the income statement, but the strong performance at this stage of the construction cycle already has lowered the risk level of the stock in our book. As a result, we believe that the expected return on the stock has turned positive, as the valuation of the stock is also moderate.

Koskisen's Q4 result published this morning was well above the comparison period and all consensus forecasts, thanks to very strong volume-driven growth in the Sawn Timber Industry.

Koskisen will publish its Q1 results on Friday at around 8:30 am EEST. Market expectations are up on the comparison period, which was burdened by strikes. For the current year, Koskisen is expected to reiterate its guidance for revenue growth and an adjusted EBITDA margin of 7-11%. We do not see a clear pricing error in Koskisen's stock in either direction ahead of the Q1 report.