Tinexta Company Research (TNXT.MI)

Tinexta’s typical high weighting of annual profit generation towards Q4 of a financial year can mean some investors view the short-term direction of the share price at this time of year as a little uncertain. This is compounded at present following the announcement on 21 July that Tecno Holding, Tinexta’s majority shareholder with a 55.8% stake, has given a consortium of private equity firms an exclusive period to carry out limited due diligence that may result in the de-listing of the company. The fact that the due diligence is ‘limited’ suggests this should be resolved in a short time period. Our discounted cash flow (DCF)-based valuation of €21 per share is unchanged following the H125 results.