OVHcloud: TP ICAP Midcap initiates coverage,says sell

(CercleFinance.com) - On Friday, TP ICAP Midcap initiated coverage of OVH Groupe's shares with a sell recommendation and a target price of E2.
9.

The broker criticizes the cloud computing service provider for growth paid for at a high price.

In its opinion, the cost of growth is so high as to lead to value destruction, both in terms of ROCE and the productivity ratio of growth capex, analysts stress.

In addition, the group is facing major challenges in terms of both growth and the regulatory environment, making its long-term prospects more uncertain, TP ICAP adds.

Its target price thus represents 32% downside potential.


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