Capgemini: Stifel remains positive, lowers TP

(CercleFinance.com) - Stifel confirms its 'buy' recommendation on Capgemini shares, despite lowering its target price for them from E245 to E225, saying that it expects 2025 to mark an inflection point for demand and earnings for the IT services group.


We believe that expectations are at a low point (with six consecutive quarters of organic decline), with some early signs that the cycle is turning (net headcount up in Q3), the broker says.

With organic growth and operating profit recovering to around 20%, we expect Capgemini's share price to jump to mid-cycle multiples in the upper 10%-20% range (vs. 12.7 times currently), it continues.


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