Analyst Mark Hyatt of Morgan Stanley maintained a Hold rating on TietoEVRY, with a price target of €18.75.
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Mark Hyatt has given his Hold rating due to a combination of factors influencing TietoEVRY’s recent performance. The company reported a slight increase in organic growth, with a notable improvement from the previous quarter, although this was partly due to a court ruling that temporarily boosted revenue. Despite this, the underlying growth figures still showed a positive trend, particularly in the Care and Industry segments, which returned to growth.
However, challenges remain, as the Banking and Create segments continued to experience declines. The company’s order backlog has increased, indicating potential future revenue, but the full-year guidance remains cautious with a wide range of possible outcomes. The adjusted EBITA margins exceeded expectations, driven by cost optimization efforts, yet the overall outlook suggests limited near-term growth potential. These mixed signals contribute to the Hold rating, as the market may need more consistent performance before a more favorable rating can be justified.