Teleperformance: Morgan Stanley raises target price

(CercleFinance.com) - Morgan Stanley on Thursday raised its target price for Teleperformance shares from E147 to E150, while maintaining its 'overweight' recommendation on them.


While we recognize that Teleperformance's long-term prospects remain uncertain due to concerns surrounding the well-identified rise of AI, we believe there are reasons to be more positive in the short term in view of its revaluation potential, it explains.

According to Morgan Stanley, the inflection point observed in organic growth should be confirmed this year, thanks to the end of the slowdown in the customer service outsourcing segment, which could lead to some pleasant surprises compared with the consensus.

In a study devoted to the business services sector, the New York-based firm points out that the stock is currently being paid for on the basis of around five times its earnings, a valuation level deemed "depressed".

MS also believes that the solid free cash flow generated by the group could enable it to "significantly" increase shareholder remuneration, assuming no M&A transactions.


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