Temenos (TEMN SW) Switzerland
Technology
US expansion is the key swing factor for TEMN over the next 12 months. With a well-resourced US sales team, a localised product suite and a pipeline growing faster than any other region, GR20 sees favourable conditions for deal conversion in 2026. They also believe the recent “Claude Cowork effect” that weighed on software valuations is fading, with sector multiples appearing to have bottomed. In GR20’s view, current valuations imply limited terminal value in DCF models - an anomaly given TEMN’s positioning and growth prospects. The stock trades at an undemanding 4.2x/3.9x 2026/27 EV/sales and 11.9x/10.9x EV/adjusted EBIT.
Edition: 231
- 06 March, 2026
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