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Elisa Oyj (HLSE:ELISA) Wins A New AI Services Deal, Is The 8% Undervaluation Enough?

Elisa Oyj (HLSE:ELISA) just signed a new agreement to deliver AI-powered IT services and Device-as-a-Service to Kempower, putting the telecom and IT provider's enterprise digital capabilities in sharper focus for investors.

Set against the new Kempower deal, Elisa Oyj's recent trading tells a quieter story. The 1-day share price return is 1.67% and the 90-day share price return is 3.63%, while the 1-year total shareholder return has declined 12.78%. This hints that sentiment is still recovering rather than showing strong momentum.

Scan how Elisa Oyj compares with other AI-focused enablers of digital infrastructure by reviewing our hand-picked 90 AI infrastructure stocks in the same space.

Elisa Oyj now has a fresh AI deal on the table, but its share price still reflects a 12.78% decline in 1-year total return. Investors may want to consider whether this setup supports adding the stock to a diversified portfolio today or waiting for a potentially more attractive entry point.

Most Popular Narrative: 8% Undervalued

Against the last close of €36.56, the most followed narrative for Elisa Oyj points to a fair value of €39.65, which frames the current price as slightly below that estimate while keeping expectations measured.

Ongoing fiber and 5G network investments, maintained within a disciplined 12% CapEx to sales range, position Elisa to capture structurally rising demand for high speed data and data center connectivity, underpinning long term revenue expansion and resilient EBITDA margins.

See why 4 investors see Elisa Oyj as 8% undervalued .

Result: Fair Value of €39.65 (UNDERVALUED)

Still, Elisa Oyj faces pressure from tougher Finnish mobile competition and possible delays in higher margin international software projects, which could challenge this 8% undervalued narrative.

Find out about the key risks to this Elisa Oyj narrative .

Next Steps

Mixed signals around Elisa Oyj can make the story feel finely balanced. Consider moving quickly to review the full risk and reward breakdown, and weigh the 2 key rewards and 2 important warning signs .

Looking for more Elisa Oyj investment ideas?

If Elisa Oyj has sharpened your focus on quality, do not stop here. Use these targeted screeners to surface fresh opportunities before others get there.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ELISA.HE .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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