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).
Q3 earnings were above our forecast and consensus, but it looks like a cost-driven beat, as the top line was ~1% below. The company said it saw a deterioration in the IT services market in Q4 and we got the impression from the earnings call that it expects this market softness to persist into 2025. We have cut our 2024–2026e adj. EBIT by 1–3%, mainly on lowered top-line estimates. We reiterate our SELL and EUR17 target price, awaiting better top-line momentum and a positive conclusion to the Tec...
>1% organic decline in Q3. - Robust profitability and FCF - TietoEVRY reported yesterday before trading its definitive Q3 results, after the pre-announcement last week. The organic decline (Pre-announced) came to -1%, marking a slowdown vs Q2 (+1% y-o-y organic). As indicated last week, the performance was impacted mainly by Create (-4% y-o-y organic vs ODDO BHF: -5.1% y-o-y org.) and Tech Services (-3% y-o-y org. vs ODDO BHF: -4.9% y-o-y organic). Banking (+4% y-o-y...
>Déclin org. au T3 de 1%. - Rentabilité et FCF solide - s - TietoEVRY a publié hier avant Bourse ses résultats T3 définitifs, après la préannonce de la semaine dernière. La baisse org. (pré-annoncée) ressortait à -1%, marquant un ralentissement vs T2 (+1% y/y org). Comme indiqué la semaine dernière, la performance est impactée principalement par Create (-4% y/y org. vs ODDO BHF : -5.1% y/y org.) et Tech Services (-3% y/y org. vs ODDO BHF : -4.9% y/y org.). Banking (+4% y...
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