OVHcloud: TP ICAP Midcap initiates 'sell', targets 3.9 euros

(CercleFinance.com) - On Friday, TP ICAP Midcap initiated coverage of OVH Groupe's shares with a sell recommendation and a target price of 3.
9 euros.

In a research note, the brokerage firm criticizes the cloud computing service provider for growth "paid for at a high price".

In our 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", stresses the investment bank.

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

Its price target thus shows a potential downside of 32% compared with last night's close.

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