Sitowise, which focuses on technical consulting and the digitalization of buildings and infrastructure, has been significantly affected by the weakness of the construction market in recent years. The industry's best profitability has melted away with low billable work, rising costs and the challenges of international growth.

On Wednesday, Sitowise organized an investor event deep-diving into the company’s Digital solutions business.

Sitowise's Q3 result was weaker than our expectations due to challenges in Sweden and the weak housing market in Finland. Measures have been taken to improve profitability, but a significant turnaround will also require traction from the market. The market outlook remains challenging, and a recovery is now more likely in the second half of next year, which in our view also limits the share's upside in the short term. Given the risks to the business and the uncertain turnaround, we do not see the stock's risk/reward ratio as attractive now.