Sopra Steria: Berenberg lowers target price
(CercleFinance.com) - Berenberg announced on Monday that it had lowered its target price for Sopra Steria shares from E232 to E227, explaining that it anticipates a "complicated" start to 2025 for the technology services group.
The analyst mentions not only the pressures currently being exerted on France, but also the risk of a weakening of activity in Germany due to the end of the ruling coalition, as well as in the UK against a backdrop of budgetary tensions.
The broker, which has therefore lowered its earnings estimates for 2025 and 2026, is however still a buyer, particularly in view of the flexibility afforded by the recent disposal of Sopra Banking Software (SBS) and valuation multiples deemed low.
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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 analyst mentions not only the pressures currently being exerted on France, but also the risk of a weakening of activity in Germany due to the end of the ruling coalition, as well as in the UK against a backdrop of budgetary tensions.
The broker, which has therefore lowered its earnings estimates for 2025 and 2026, is however still a buyer, particularly in view of the flexibility afforded by the recent disposal of Sopra Banking Software (SBS) and valuation multiples deemed low.
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.