OVHcloud: share price falls, analyst initiates sale

(CercleFinance.com) - OVHcloud is losing ground on the Paris Bourse this Friday, in the wake of a note from TP ICAP Midcap, which has initiated a sell decision in its follow-up of the stock.


The cloud computing service provider's stock is currently losing more than 2.2%, significantly underperforming a Paris market down by around 0.6%.

The share is now down over 35% since the start of the year.

In a note published this morning, TP ICAP Midcap criticized the cloud computing services provider for growth "paid for at a high price".

In our opinion, the cost of growth is so high that it is leading to value destruction, both in terms of ROCE and the productivity ratio of growth capex", stresses the brokerage firm.

"In addition, the group is facing major challenges both in terms of growth and the regulatory environment, making its long-term prospects more indecisive", adds the investment bank.

Its price target therefore suggests a potential downside of 32% compared with last night's close.

The Group plans to publish full results for its 2023/2024 financial year on October 24.

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