Teleperformance: Deutsche Bank cuts TP

(CercleFinance.com) - Deutsche Bank announced on Monday that it had lowered its price target for Telepeformance shares from E140 to E110, as it felt that many questions remained unanswered regarding the company's future prospects.


The broker - which maintains a 'hold' recommendation on the share - stresses that significant clouds still surround the French group's short-, medium- and long-term prospects.

In medium term, the analyst says he sees no sign of an imminent pick-up in activity in call centers, a business in which US operators have cut almost 20% of their jobs since the end of 2020.

The number of employees in the sector is now below its 1996 level, it argues, with the rate of job destruction still reaching 9% in January this year, it continues.

More generally, Deutsche notes that the rhetoric from both customer experience outsourcing specialists and business process management (BPO) players has been tinged with caution of late.

With customer capital spending still under pressure, growth looks set to be weak in H1 2024, the analyst concludes.


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