TietoEVRY (Sell, TP: EUR16.00) - Risk still skewed to the downside
Following the slightly soft Q4 results and 2025 guidance, we have lowered our 2025–2026e adj. EBIT by 2–4% and EPS by 1–4%. Furthermore, we interpret the impairment of goodwill in Tech Services and delayed conclusion of the strategic review as a possible indication the potential buyer’s offer leaves the valuation on the low side. Overall, we believe this leaves the risk skewed to the downside; we reiterate our SELL and have cut our target price to EUR16 (17).Tieto is an IT services company in the Nordics providing full lifecycle IT services. The reportable operating segments in service line dimension are Managed Services, which is an IT infrastructure and cloud provider that provides enterprise platform services and end user solutions; Consulting and System Integration, which provides consulting and system integration services, application management and transformation consulting; Industry Products, which provides industry-specific software products and productized solutions; and Product Development Services, which provides services in the field of communications and embedded technologies for a global customer base.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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