Capgemini: Oddo BHF on hold, cuts TP
(CercleFinance.com) - While reiterating its 'neutral' opinion on Capgemini shares, deeming it difficult to expect a relative rerating of the stock, given its overexposure to Europe relative to peers, Oddo BHF has reduced its target price for it from E211 to E202.
While it sees little surprise in the company's mixed H1 results, the broker sees a negative surprise in the IT services group's comments on its outlook, and is therefore lowering its own estimates for 2024 and 2025.
In valuation terms, Oddo BHF notes that the Capgemini share is trading on a 2025 FCF yield of 5.7%, at a discount of just 12% to its global peers, compared with a historical discount of 20%.
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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.
While it sees little surprise in the company's mixed H1 results, the broker sees a negative surprise in the IT services group's comments on its outlook, and is therefore lowering its own estimates for 2024 and 2025.
In valuation terms, Oddo BHF notes that the Capgemini share is trading on a 2025 FCF yield of 5.7%, at a discount of just 12% to its global peers, compared with a historical discount of 20%.
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.