Bittium

We are raising Bittium's target price as European defense spending is likely to rise to a new level in the coming years. This significantly improves Bittium's long-term outlook and supports estimates, but tactical communication systems are so-called strategic investments and procurement processes are usually lengthy. In our view, the short-term earnings growth outlook remains largely unchanged, and with the estimates for the coming years, the share is already stretched high, but even one major win could change the situation. We reiterate our recommendation due to an unsatisfactory risk/reward ratio.