Assystem: share price down, analysts lower targets

(CercleFinance.com) - Assystem's share price ended the day down 1.
5%, penalized by two analysts' target cuts.

Stifel reiterated its buy recommendation on the stock, but lowered its target price to E57 (from E60) following the announcement of results for the first half of 2024.

The analyst believes that Assystem has published solid results for the first half of 2024, particularly with regard to the profitability of its core business.

'In addition, the outlook for 2024 has been confirmed. However, after the company's conference, we were slightly dampened by the outlook beyond 2024, which led us to lower our target and slightly reduce sales forecasts for 2025E by -1%'.

'More importantly, we have significantly reduced Expleo's contribution to Assystem's results', adds Stifel.

Invest Securities confirms its neutral recommendation on the stock and lowers its target price to 42 E (from 48 E) following the announcement of its H1 2024 results.

'As we mentioned at the end of July when we published our H1 24 sales, the operating business, driven by the nuclear revival, is solid and immune to the slowdown in the SICT and ESN markets. On the other hand, our fears concerning Expleo have been confirmed, with the disposal timetable once again postponed and the estimated sale price revised downwards (€235m vs. €276m previously)' indicates Invest Securities.

The research firm believes that the refocusing on nuclear power will therefore take longer than expected to finalize, and hopes of a further significant return to shareholders have been postponed.

The price target has been lowered to take account of Expleo and a higher number of shares with the last tranche of bonus shares (10% of capital in total), bearing in mind that we had already taken into account the 12.5E dividend distribution' adds Invest Securities.

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