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Research

Tietoevry: Price rise has reversed the clearest undervaluation

By Joni GrönqvistAnalyst
Tietoevry
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Tietoevry’s comments in the analyst call were in line with earlier. Uncertainty remains in a few areas, while the demand for the software business continues as good. Our forecasts include a milder decline in the areas that suffer from the market, and our forecasts for the full year are at the bottom of the guidance. Thus, there is still a slight risk of a profit warning for Q4. On the other hand, we believe the stock market is well aware of this risk. The price increase has reversed the clearest short-term undervaluation (adj. 2024 EV/ EBIT 9x).

Tietoevry

21.86EUR16.01.2024, 18.00
25EURTarget price
Accumulate
Changed from:Buy
Recommendation updated:16.01.2024

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.

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Key Estimate Figures16.01.2024

202223e24e
Revenue2,928.12,848.72,911.9
growth-%3.7 %-2.7 %2.2 %
EBIT (adj.)379.0359.6374.9
EBIT-% (adj.)12.9 %12.6 %12.9 %
EPS (adj.)2.352.192.27
Dividend1.451.501.55
Dividend %5.5 %10.0 %10.3 %
P/E (adj.)11.36.96.6
EV/EBITDA9.06.65.8
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