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