TINEXTA S.P.A.’s FY22 results demonstrated strong growth but were just shy of Edison Group expectations, mainly due to lower growth than expected from the Cyber Security (CS) division. Management’s new guidance suggests greater profit growth in FY23 than was delivered in FY22, before any contributions from recently announced and likely further mergers and acquisitions (M&A) are considered. The growth plan continues to focus on strengthening Tinexta’s position in its reference markets, M&A, internationalisation of the divisions and cross-selling opportunities. We downgrade our FY23 and FY24 EBITDA estimates by 7–8% to reflect the new guidance. Edison's DCF-based valuation of €29.5/share (€38.7 previously) suggests the company’s share price is attractively valued.
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