Capgemini: Invest Securities still a buyer
(CercleFinance.com) - The analyst believes that while Q3 was just below expectations, it above all bettered the cautious message about the end of 2024 and 2025, as punished yesterday (-6%).
While the trend in the Financial Services and Technology sectors is improving, the sharp deterioration in the Manufacturing sector is weighing on us. With EPS 2024-26e revised by -2.5%/-5.7%/-3.8%, the investment thesis on CapGemini is not called into question, the broker says.
The resilience of profitability and FCF should even be highlighted. However, the improvement in organic growth, the stock's main catalyst, has once again been pushed back a few quarters, Invest Securities adds.
While we remain convinced that Capgemini has one of the highest growth profiles among European NSEs, its realisation will have to wait.
Invest Securities reiterates its Buy opinion with an unchanged target price of E240.
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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 the trend in the Financial Services and Technology sectors is improving, the sharp deterioration in the Manufacturing sector is weighing on us. With EPS 2024-26e revised by -2.5%/-5.7%/-3.8%, the investment thesis on CapGemini is not called into question, the broker says.
The resilience of profitability and FCF should even be highlighted. However, the improvement in organic growth, the stock's main catalyst, has once again been pushed back a few quarters, Invest Securities adds.
While we remain convinced that Capgemini has one of the highest growth profiles among European NSEs, its realisation will have to wait.
Invest Securities reiterates its Buy opinion with an unchanged target price of E240.
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.