Stifel reaffirms its 'buy' recommendation on Capgemini despite lowering its target price from 245 to 225 euros, indicating that it expects '2025 to mark an inflection point for demand and earnings' for the IT services group.

'We believe that expectations are at a low point (with six consecutive quarters of organic decline), with some early signs that the cycle is turning (net headcount up in Q3)', says the broker.

"With organic growth and operating profit recovering to around 20%, we expect Capgemini's share price to jump to mid-cycle multiples in the upper 10-20% range (vs. 12.7 times currently)", he continues.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.