Tietoevry (AO) | Hold | Q2 Preview: growth still missing

研报英文原文证据摘录

Tietoevry (AO) | Hold | Q2 Preview: growth still missing

Tietoevry Hold | Target Price: EUR18.00

Company description Management

TietoEVRY is by far the largest Nordic IT services provider with 24,000 employees: Endre Rangnes, CEO

12,000 across the Nordic countries and 12,000 in countries such as India, the Tomi Hyrylainen, CFO

Czech Republic, and Ukraine. The ongoing strategic reviews could lead to the Tomas Franzén, COB

listing of the Banking division and the sale of Transfrom and Connect, enabling Key shareholders

the company to focus on its most promising businesses (software and digital Free float 74.82%

engineering). Solidium Oy 10.86%

Cevian Capital 7.92%

Incentive AS 5.10%

Investment case Valuation methodology

Tieto is now positioned as a Nordic software company with We value the company using a SOP approach.

selective European expansion, reducing legacy exposure after The software mix now warrants higher weighting, especially

the Tech Services exit. Caretech, Banktech and Indtech, all targeting mid-to-high teens

2026 is a transition year with flat to slightly negative growth but profitability.

a clear margin uplift from the cost savings and the end of IFRS 5 2026E SOP points to EUR18 per share, c.12x 2026E "clean"

burdens. EBITA.

Execution risk remains high: Tieto must prove it can grow Risks to our rating

outside the Nordics, deliver the organisational simplification, Under-delivery of 2026/27/28 transition plan.

and convert its SaaS and AI plans into real revenue acceleration. Nordic share losses and weak SaaS conversion.

Catalysts Tech Consulting failing to stabilise.

SaaS mix rising faster than expected.

Visible EBITA uplift from cost savings.

Early Tech Consulting turnaround.

Key data charts

Price performance Sales split by region Sales split by division