Stifel announced on Monday that it had reduced its recommendation on OVHcloud shares from 'hold' to 'sell', advising investors to tender their shares to the proposed public stock buyback tender offer (OPRA) filed by the technology group.
In a note, the broker considers the proposed price of nine euros per share to be 'fair', especially as it indicates that it does not expect the news surrounding the company to be particularly favorable over the coming months.
In his opinion, the share could underperform in the coming months due to reduced liquidity, rising debt and risks linked to governance issues.
The broker also anticipates further losses for the cloud specialist in the first half of the year.
"We therefore recommend tendering to the offer, which is due to begin on December 10", he writes in his note.
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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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