Capgemini: Stifel remains positive, lowers TP
(CercleFinance.com) - Stifel confirms its 'buy' recommendation on Capgemini shares, despite lowering its target price for them from E245 to E225, saying that it expects 2025 to mark an inflection point for demand and earnings for the IT services group.
We believe that expectations are at a low point (with six consecutive quarters of organic decline), with some early signs that the cycle is turning (net headcount up in Q3), the broker says.
With organic growth and operating profit recovering to around 20%, we expect Capgemini's share price to jump to mid-cycle multiples in the upper 10%-20% range (vs. 12.7 times currently), it continues.
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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.
We believe that expectations are at a low point (with six consecutive quarters of organic decline), with some early signs that the cycle is turning (net headcount up in Q3), the broker says.
With organic growth and operating profit recovering to around 20%, we expect Capgemini's share price to jump to mid-cycle multiples in the upper 10%-20% range (vs. 12.7 times currently), it continues.
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.