Temenos (TEMN SW; TMSNY US): M&A Looks Imminent

Research Analyst, AlphaBox Advisors

Vijay Lohia, CFA

Research Analyst

Value-Investing Philosophy and Bottom-up Approach

AlphaBox Advisors

At AlphaBox, our recommendations are sector and country agnostic and diversified by market cap. We follow value-investing philosophy and pursue a bottom-up approach to recommending stocks that has a good risk-reward profile and potential to generate market-beating returns, which in some cases would be complemented with an attractive dividend yield. Our recommendations fall into the following two broad categories: (i) Long-term Compounders – Global Markets (ii) EM and FM Alpha

Event-Driven

<ul>
<li>Overall, the sentiments are extremely negative with most sell-side analysts having a Sell/Neutral rating on the stock.</li>
<li>We believe either A) Revenue and earnings growth will pick up under the new management team, or B) Temenos will be taken over by some private equity firm.</li>
<li>While revenue growth has remained subdued, the company’s moat remains intact in our view.</li>
</ul>


Overall, the sentiments are extremely negative with most sell-side analysts having a Sell/Neutral rating on the stock.
We believe either A) Revenue and earnings growth will pick up under the new management team, or B) Temenos will be taken over by some private equity firm.
While revenue growth has remained subdued, the company’s moat remains intact in our view.


Temenos (TEMN SW): World's No.1; Improving Fundamentals; M&A Candidate

Temenos AG

Temenos (TEMN SW): World's No.1; Improving Fundamentals; M&A Candidate