In recent movement, asset manager Capman has been completely removed from Inderes’ model portfolio. According to analysts, they believe that Neste’s challenges are manageable and short-term in nature. Known for its stock analysis, Inderes has made changes to its model portfolio, selling out Capman and adding Liquid in February. Capman had been in the model portfolio since 2013 with a weight of four percent, but the valuation of the stock is now relatively neutral, prompting funds to be allocated elsewhere.
Capman’s stock had been in the model portfolio for several years, but the recent rise in interest rates impacted their business more than expected. As a result, the stock was removed due to lowered acceptable valuation factors. On the other hand, Neste was added to the model portfolio in February, despite a subsequent 20 percent fall in its share price. The analysts find Neste’s short-term challenges manageable and believe that they will resolve in the near future. They also see good potential for the company’s growth in the long term.
The analysts justify the increase in Neste’s weight in the model portfolio due to the company’s projected growth and dividend yield. With the sale of Capman, the cash weight of Inderes’ model portfolio increased to 13 percent, which is considered on the low side historically. The analysts see the current valuation of the Helsinki stock exchange as offering opportunities for good stock picking in the future, and they are prepared to reduce the cash weight further as opportunities arise.
For the sake of transparency, Inderes reports the model portfolio team and their trades, with several team members purchasing Neste shares in recent months. Capman’s stock has two analyst recommendations, while Neste’s shares receive positive recommendations from analysts, including Inderes. The analysts believe in Neste’s growth potential and expect it to be reflected in its share price. Neste’s average target price is 33.33 euros, with various analysts providing different estimates.