Sopra Steria: Invest Securities adjusts target price

(CercleFinance.com) - The analyst believes that the IT services group's annual results have proven to be solid, particularly with an EBITA margin that only fell by 100bp in 2020, despite the health crisis and the cyber attack it was hit by.


However, the cautious messages on the growth momentum in Q1 21 for its software activities, as well as its conservative guidance for an improvement in its EBITA margin (+50-100bp only) weighed on the share on Friday
(-4.7%), Invest Securities says.

Analysts believe that overall conclusions are positive, with a net resumption of LFL growth from Q2 21 and a margin increase, that is nevertheless stronger than they were expecting, the analyst adds.

Invest Securities confirms its buy rating on the stock, while adjusts its target price to 156 euros (from 163 euros - current price: 140 euros, up 4%).


Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.