Temenos (TEMN SW) Switzerland
Technology
M&A looks imminent especially given the latest round of banking industry turmoil - AlphaBox upgraded the stock to Buy earlier this year with a 12-month TP of CHF77, valuing TEMN at 20x FCFF on their normalised 2023E of CHF280m. However, in their initiation report they also stated that there could be material upside from a takeover. At a buy-out multiple of 10x EV/Sales (which is reasonable given that over the last 12-18 months, M&A in the tech space has occurred at 9-15x EV/Sales), TEMN would be worth CHF110 per share (70%+ upside).
Edition: 158
- 14 April, 2023