Were it not for, among other things, a false dawn in 2024, Ten’s valuation would be discounting the upcoming inflection point in growth and profitability, as the digital shift increases its total addressable market, and enhances the margin. Implementation of AI accentuates this upward trajectory. However, the low rating and ‘show me’ stance adopted by markets has created a window to make outsize returns. If its medium-term objectives are met, the share price should appreciate towards 400p (vs 51p today). But the upside scenarios go well beyond that. Buy.
