Tietoevry: Uncertainty limits enthusiasm about the share
We reiterate our Accumulate recommendation for Tietoevry and lower our target price to EUR 26.0 (was 31.0) reflecting estimate changes and increased uncertainty. Q2 figures remained below our estimates for several reasons, but H2 should be stronger supported by the order backlog and efficiency measures. The company repeated its guidance that indicates earnings growth, which, we believe will require good performance and no stronger headwinds on the market. The company's good track record maintain confidence in continued positive development in the coming years, although there is uncertainty in the short term. The valuation picture of the share is still attractive from several angles (2023e adj. P/E 10x, DCF € 33 and SOTP € 31) and the business areas to be separated provide drivers to dismantle the undervaluation.
Tietoevry
Tietoevry is active in the IT sector. The company offers a range of software and cloud-based solutions, with the greatest specialist expertise in SaaS solutions. Expertise is found in business processes, application services, infrastructure solutions, and front-end solutions. Customers are found in a number of markets on a global level. The company was created in 2019 via a merger of Tieto and EVRY. The head office is located in Helsinki.
Read more on company pageKey Estimate Figures22.07.2023
2022 | 23e | 24e | |
---|---|---|---|
Omsætning | 2.928,1 | 2.862,2 | 3.008,4 |
vækst-% | 3,71 % | -2,25 % | 5,10 % |
EBIT (adj.) | 379,0 | 378,5 | 401,6 |
EBIT-% (adj.) | 12,95 % | 13,22 % | 13,35 % |
EPS (adj.) | 2,35 | 2,35 | 2,51 |
Udbytte | 1,45 | 1,50 | 1,55 |
Udbytte % | 5,47 % | 9,02 % | 9,32 % |
P/E (adj.) | 11,29 | 7,09 | 6,61 |
EV/EBITDA | 8,99 | 5,99 | 5,34 |