Temenos (TMNSF – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Charles Brennan from Jefferies maintained a Buy rating on the stock and has a CHF72.00 price target.
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Charles Brennan has given his Buy rating due to a combination of factors surrounding Temenos’s performance and strategic decisions. Despite the complexities brought about by the recent disposal of Multifonds, Brennan views the company’s underlying guidance metrics as stable. The decision to sell Multifonds, a noncore asset, is anticipated to slightly reduce headline FY25 consensus earnings and free cash flow per share by a small margin, a trade-off considered worthwhile.
Temenos’s fourth-quarter performance in 2024 exceeded expectations, with a notable increase in both software licensing and total revenues, surpassing consensus estimates at the time of the preannouncement. Additionally, the company’s earnings before interest and taxes were significantly higher than anticipated. Although the Multifonds disposal introduces some variability, Temenos’s guidance for growth in subscription, SaaS, EBIT, and free cash flow remains robust, reinforcing Brennan’s positive outlook on the stock.