Sopra Steria: Bryan Garnier raises target price

(CercleFinance.com) - Bryan Garnier reiterates its "buy" rating on the Sopra Steria stock, upping its fair value from 181 euros to 199 euros, in the wake of its 2021-2028 operating margin estimate for the IT services group, which it has raised from 9.
5% to 10%.

The broker has also revised its adjusted EPS estimates: by -2% for 2018, +4% for 2019 and +11% for 2020 (+13 euro impact on the share's fair value), while pension provisions have been cut from 469 million euros to 359 million euros (+5 euros).

“Although Sopra Steria confirmed its aim to remain independent, guidance for a CAGR in 2018-2020 lfl sales of 3-5% is prudent given the potential harboured in Banking Software, while the c. 10% op. margin and 5-7% FCF/sales goals look credible,” the broker said.


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