Capgemini topped the CAC 40 on Monday afternoon in Paris after HSBC raised its recommendation on the stock from 'hold' to 'buy'.

At around 4:30 pm, the stock gained 1.4%, while the CAC lost 0.7% at the same time.

In a note dedicated to the European technology sector, HSBC expresses its preference for stocks such as Teleperformance, SAP, Adyen and Capgemini due to their ability to generate growth, while their stock market valuations remain inexpensive today.

With regard to Capgemini more specifically, the investment bank explains that it does not expect any significant deterioration in economic conditions, which leads it to anticipate stable demand for digital transformation services, with growth expected to pick up from the second quarter onwards.

Its target price for the stock has been raised from €185 to €225.

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