Stifel has upgraded its recommendation on OVH from 'hold' to 'buy', with a price target raised from seven to 11.5 euros, as 'announcements at the recent investor meeting have increased visibility on EBIT margin expansion and FCF over the next three years'.
Short-term momentum is positive, thanks to a favorable basis for comparison", adds the broker, for whom the group's forthcoming earnings publications have the potential to support a revaluation.
Stifel is convinced that OVH's share price should rise significantly to €25 per share within four years, offering investors an average annual return of around 30%.
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OVH Groupe is the leading European cloud services provider, uniquely positioned to capitalize on the rapidly growing cloud market.
The Group provides business customers with a comprehensive suite of solutions designed to capture growing demand for multi-cloud and hybrid cloud strategies, while meeting the surging demand for data sovereignty and trusted cloud solutions.
OVH Groupe provides 1.6 million customers - composed largely of SMBs, large and tech enterprises, as well as the public sector - with a comprehensive suite of solutions in private, public and web cloud, leveraging its global network of 44 data centers, hosting over 500,000 servers across 4 continents.
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