Sopra Steria: share falls, as Berenberg cuts TP

(CercleFinance.com) - On Monday morning, Sopra Steria was one of the biggest fallers on the SBF 120 index, as Berenberg lowered its target price for the stock, saying it anticipated a "complicated" start to 2025.


In morning trading, the digital transformation specialist's shares were down around 0.9%, while the SBF 120 index was up over 1% at the same time.

In a note, Berenberg mentions not only the pressures currently being exerted on France, but also the risk of a weakening of activity in Germany due to the end of the ruling coalition, and in the UK against a backdrop of budgetary tensions.

The broker, which has consequently lowered its earnings forecasts for 2025 and 2027, has reduced its target price for the stock from E232 to E227, maintaining a buy rating, particularly given the flexibility afforded by the recent disposal of Sopra Banking Software (SBS) and valuation multiples deemed low.


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