'Too cheap to ignore': MS resumes Tietoevry at 'overweight'

Tieto Oyj

15/05/2024 09:53

** Morgan Stanley resumes Tietoevry  TIETO.HE  coverage with
"overweight" and TP of EUR 26, saying the Finnish IT services
provider's stock is "too cheap to ignore"
    ** Tietoevry trades on 8.9x adj. P/E on a 12-month basis,
which MS says is an "unjustified" 29% discount to its 20-year
average 
    ** It cites the company's leading position in the Nordic IT
services market, improved revenue mix and strong track record on
capital returns
    ** "Cycle playing out, buy the dip," adds the broker, noting
that softening comparison figures for the rest of the year and
positive working days impact are likely to help growth recovery
    ** "The conclusion of the Tech Services strategic review
(expected in 2Q24) could unlock value and would improve the
remaining group's growth and margin profile," it adds
    ** The stock is up 4.4%, tracking its biggest single-day
jump in three months, and among top movers on the pan-European
STOXX 600  .STOXX 
    ** Out of 14 analysts covering Tietoevry, four rate the
stock "strong buy" or "buy", nine "hold" and one "strong sell"

 (Reporting by Anna Chaberska)
 ((Anna.chaberska@thomsonreuters.com))