Stifel downgrades its recommendation on OVHcloud from 'buy' to 'hold', with a price target drastically reduced from 11.5 to six euros, while removing the IT services group's shares from its list of growth stocks.
The broker considers the founders' willingness to sell OVH shares on a regular basis in order to finance other activities outside the group to be "problematic", showing that they "are not focused on value creation at OVH".
Stifel believes that OVH is "fundamentally undervalued", but that the company "has a long way to go before it regains the confidence of investors", and that the stock is unlikely to attract much interest over the next few months.
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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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