Report
Miika Ihamaki
EUR 87.30 For Business Accounts Only

Tokmanni (Buy, TP: EUR13.50) - Aisle of opportunity

We have upgraded Tokmanni to BUY (HOLD) and raised our target price to EUR13.5 (13.0). We believe the recent market reaction overly penalised Tokmanni, with a PEG of c0.6x offering a good entry point in one of the largest variety discounters in the Nordics. Although overall economic uncertainty has risen, we believe Tokmanni’s low exposure to cyclical demand supports sustained growth and continue to see higher margins through operational scaling. For Q1e, we are close to consensus and expect 2025 guidance to be maintained.
Underlying
Tokmanni Group Oyj

Tokmanni Group Oyj is a Finland-based company, which is primarily involved in the retail industry. The Company operates a retail chain with more than 150 stores in Finland. Tokmanni Group Oy's product assortment comprises approximately 25 000 active stock keeping units (SKU's) in six different product categories, such as home cleaning and personal care, groceries, clothing, tools and electrical equipment, leisure and home electronics, home and garden decoration. The home cleaning and personal care product category is divided into four subcategories: personal care, home care, household paper products, other products. The groceries product category is divided into six subcategories: beverages, snacks, cookies and candies, pet food and pet accessories, diet and nutrition, canned food, fresh food. The clothing product category includes mainly casual wear for daily use. The tools and electrical equipment product category includes various do-it-yourself goods, power, hand and other tools.

Provider
DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

 

Analysts
Miika Ihamaki

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