Morgan Stanley, which has an "underweight" recommendation on OVHcloud, lowered its target price on Thursday from €10.4 to €9.7 in the wake of yesterday's first-half results.
According to the research firm, this performance reflects not only the slowdown in corporate capital spending, but also the effect of inflationary pressures, in particular the rise in electricity prices.
According to the analyst, the growth opportunity represented by the cloud market remains intact, but achieving the targets set for 2025 - sales growth of around 25% for an adjusted operating margin of around 42% - could prove difficult.
Morgan Stanley points out that it is not the only one to consider the achievement of these forecasts complicated, since the consensus is now for annual sales growth close to 19% for an operating margin of around 40%.
The professional adds that after a fall of over 30% last year, OVH shares are currently down 35% this year.
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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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