We initiate coverage of SoftwareOne with a BUY recommendation and NOK 172/sh TP as we find significant asymmetrical risk/reward for a 1y+ horizon. We believe there is >3x upside should 1) SoftwareOne succeed with its underlying turnaround, 2) cost synergies with Crayon be realized, and 3) our understanding of the MSFT incentive changes being structurally positive be correct. In this bull case scenario the shares trade at 5x 2027e cEPS (peers at 14-22x). Short-term, however, it may be a bumpy roa ....
