Following OVHcloud's 'unsurprising' quarterly trading update, Oddo BHF has raised its opinion on the stock from 'underperform' to 'neutral', with the target price maintained at 10.5 euros, after the share price plummeted.
After the profit warning issued last April, the group's sales showed organic growth of 13% to 228 million euros, a level exactly in line with expectations, and therefore does not justify any change in the research firm's forecasts.
OVH's challenges remain numerous, with an industry that has been experiencing a sharp slowdown in growth momentum for several quarters, unfair competition from American hyperscalers and a model that is too capex-intensive", it judges.
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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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