Teleperformance: leads CAC 40 on MS upgrade
(CercleFinance.com) - On Tuesday, Teleperformance shares topped the CAC 40 index following an upgrade by Morgan Stanley, which put the threat posed by the emergence of artificial intelligence (AI) into perspective.
The analysts at the US investment bank have upgraded their rating on the stock to "overweight", from "equal weight", albeit with a target price reduced from E171 to E147.
While acknowledging that the acceleration in the automation of customer experience outsourcing activities represents a "risk" for the group, MS believes that the scenario of the company being totally excluded from the market is highly unlikely to materialize.
On the contrary, the New York-based firm's teams say they see several catalysts likely to support the share price in the short term, starting with the diminishing impact that AI-related news can have on the stock.
Morgan Stanley adds that Teleperformance's 2024 annual targets seem achievable, and that the company could soon unveil new medium-term prospects.
Finally, the analysts mention the promise of further redistributions to shareholders, while emphasizing that European investors seem to be showing increasing interest in Teleperformance.
Following these comments, the share gained 3.8% on Tuesday morning, topping a CAC 40 (down 0.5%). The share has now cut its YTD fall to 19%.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
The analysts at the US investment bank have upgraded their rating on the stock to "overweight", from "equal weight", albeit with a target price reduced from E171 to E147.
While acknowledging that the acceleration in the automation of customer experience outsourcing activities represents a "risk" for the group, MS believes that the scenario of the company being totally excluded from the market is highly unlikely to materialize.
On the contrary, the New York-based firm's teams say they see several catalysts likely to support the share price in the short term, starting with the diminishing impact that AI-related news can have on the stock.
Morgan Stanley adds that Teleperformance's 2024 annual targets seem achievable, and that the company could soon unveil new medium-term prospects.
Finally, the analysts mention the promise of further redistributions to shareholders, while emphasizing that European investors seem to be showing increasing interest in Teleperformance.
Following these comments, the share gained 3.8% on Tuesday morning, topping a CAC 40 (down 0.5%). The share has now cut its YTD fall to 19%.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.