Capgemini: stock falls after analyst's downgrade

(CercleFinance.com) - Capgemini is down over 2% today, following a note written by Invest Securities, which downgrades its rating on the stock from "neutral" to "sell," cutting its target price from 99 euros to 91 euros, judging that the valuation of the IT group has reached a "very demanding" level.


According to the broker's analysts, the share's current price is close to analysts' average target price, even though they prefer a scenario that seems to be optimistic, while Capgemini is exposed to significant risks - particularly its position on the North American market.

Its competitors in the US are seeing their growth slow down, with pressure on margins, because of a difficult price environment and costs of investment in digital, the analyst monitoring the stock pointed out.



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