Analyst Adam Wood of Morgan Stanley maintained a Sell rating on Temenos, with a price target of CHF63.00.
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Adam Wood has given his Sell rating due to a combination of factors, primarily revolving around leadership and valuation concerns. The recent appointment of Takis Spiliopoulos as the permanent CEO, after serving as interim CEO and previously as CFO, provides some stability. However, the ongoing search for a new CFO introduces an element of uncertainty in the company’s leadership structure.
Furthermore, while the company has maintained its guidance for FY25 and FY28, the current stock valuation appears high. Temenos is trading at approximately 22x/19x FY26e/FY27e adjusted P/E excluding stock-based compensation, and 26x/24x including it. This valuation may not be justified given the leadership uncertainties and the potential for an external hire to bring broader strategic insights that could better position the company for future growth.
Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is neutral on the stock.