Sopra Steria: Invest Securities raises TP

(CercleFinance.com) - Invest Securities reiterates its 'buy' rating on Sopra Steria shares, raising its target price for them from E262 to E266, the day after it announced a E150m share buyback program (3.
9% of capital at the current price) which 'sends a positive message'.

On the strength of a solid financial position following the disposals finalized in September (net debt 2024 of E366m, i.e. 0.5x reported EBITDA), management is taking advantage of the undervaluation (adjusted EV/EBITA 2024-25 of 8.3x-7.1x), the analyst explains.

Even if short-term momentum is not encouraging, Sopra Steria's resilient model protects it from a violent exit, although there is a risk of a further warning on 2024 sales, he adds.


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