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BITTI: Embedded AI Expansion And Stable Outlook Are Expected To Support Momentum

Next Generation Security Devices Will Drive Demand For Secured Connectivity

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BITTI
AnalystConsensusTarget
Not Invested
Published 23 Feb 2025

Update shared on 09 Dec 2025

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AnalystConsensusTarget's Fair Value
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1Y
191.5%
7D
9.5%

Analysts have modestly lifted their price target on Bittium Oyj to €19.73 from €19.73, citing a slightly higher discount rate and stable expectations for revenue growth, profit margins, and future valuation multiples.

What's in the News

  • Bittium reaffirmed its 2025 earnings guidance, targeting net sales of EUR 95 million to EUR 105 million versus EUR 85.2 million in 2024, and an operating result of EUR 10 million to EUR 13 million compared to EUR 8.6 million in 2024 (company guidance).
  • The company launched a new Embedded AI offering focused on intelligent on-device solutions for telecom, IoT, defense, and satellite communication markets. This aligns with its growth strategy in AI enabled product development services (company announcement).
  • Bittium entered a collaboration with Edge Impulse, a Qualcomm company, to streamline dataset creation, model training, and on device deployment. The collaboration aims to shorten development cycles and reduce costs for AI powered products (company announcement).
  • The Embedded AI initiative includes pre validated algorithms, over the air update capabilities, and reusable software components designed to enable scalable, repeatable products in demanding markets (company announcement).

Valuation Changes

  • The fair value estimate remained unchanged at €19.73 per share, indicating no material revision to the intrinsic value assessment.
  • The discount rate has risen slightly from 7.19 percent to 7.25 percent, reflecting a modestly higher required rate of return.
  • The revenue growth forecast is effectively unchanged at around 23.4 percent, suggesting stable expectations for top line expansion.
  • The net profit margin outlook is essentially flat at about 16.6 percent, indicating no meaningful shift in profitability assumptions.
  • The future P/E multiple has risen slightly from 30.45x to 30.51x, pointing to a marginally higher valuation multiple applied to future earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.