Sopra Steria: Oddo BHF remains positive after CMD
(CercleFinance.com) - Oddo BHF confirmed its 'outperform' rating on Sopra Steria shares, with a target price of E251, the day after the company's CMD, which in its view revealed a good dose of caution that was misinterpreted by the market.
According to the broker, the share's reaction on the stock market (-10%) indicates a clear lack of understanding of the announcement of these medium-term targets, which are deemed disappointing despite not being below consensus expectations.
Oddo BHF believes that the reaction was amplified by the absence of guidance for 2025, even though this is a logical communication on the part of Sopra Steria, as the budget process is not yet complete.
From this viewpoint, the few indications given by the company seem rather reassuring, as they point in the direction of good resilience in 2025, the analyst says, who also considers that the stock remains extremely poorly valued.
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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.
According to the broker, the share's reaction on the stock market (-10%) indicates a clear lack of understanding of the announcement of these medium-term targets, which are deemed disappointing despite not being below consensus expectations.
Oddo BHF believes that the reaction was amplified by the absence of guidance for 2025, even though this is a logical communication on the part of Sopra Steria, as the budget process is not yet complete.
From this viewpoint, the few indications given by the company seem rather reassuring, as they point in the direction of good resilience in 2025, the analyst says, who also considers that the stock remains extremely poorly valued.
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.