Tietoevry: A driver found to dissolve undervaluation

On Friday, Tietoevry reported a number of interesting things. In Q2, revenue continued to grow strongly, but the result was below expectations. The company raised its revenue guidance and repeated its profitability guidance. However, focus was on the company's plans to separate and list the Banking business, which we expect to clarify the structure, better enable business potential, and dissolve undervaluation. Our estimates remain almost unchanged and we expect stable earnings growth through strengthened revenue growth and profitability and good dividend yield for the coming years. The valuation picture of the share is still very attractive from several angles (2022e adj. P/E 11x and dividend yield > 6%) and now, with the separation, a driver to dissolve the undervaluation.