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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.
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 decision-making aids 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.
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.
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 decision-making aids 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.