SOPRA STERIA : Oddo BHF raises its target slightly
April 29, 2024 at 06:18 am EDT
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Oddo BHF maintains its 'outperform' rating on Sopra Steria shares, with a price target raised from €290 to €291.
The analyst points out that last Friday, Sopra Steria published Q1 sales in line with expectations, implying org. growth marginally below expectations (org. growth. Q1 growth of +0.3% vs. 0.9%e), and a marked slowdown compared with Q4 (+6.2% org.), as expected, penalized in particular by a weakening in demand.
"Sopra Steria's management was cautious for Q2, citing a limited recovery in growth, excluding the impact of working days", adds the broker.
Sopra Steria also reiterated its 2024 guidance: i/ organic growth of 2% to 4% (css: 3.2% org prepublication); ii/ MOA of +9.5% to 10.0% (css: 9.7%, prepublication); and iii/ FCF> 350 ME (Css FactSet: 366 ME prepublication).
The share's post-publication underperformance, after the previous days' decline due to disappointing peer publications, seems clearly unjustified', judges Oddo BHF.
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Sopra Steria Group is one of the leading French companies providing IT services. The activity is organized mainly around three areas:
- consulting services: strategic consulting, implementing of restructuring projects and development towards new technologies, etc.;
- systems integration and solutions: design and implementation of Internet technology solutions (portals, merchant sites, Intranet and Extranet networks, etc.), integration of ERP solutions, implementation of application solutions (customer relationship management, HR management, etc.). The group also offers subcontracting solutions for providing technical support to users and application maintenance;
- outsourcing services and operation of professional processes: supervision, administration and operation of IT infrastructures, operation of finance, administration, human resources functions, etc.
Net sales break down by market between industry (29.6%), services (24.6%), public sector (19.4%), finance (16%), telecommunications and media (7.2%) and retail (3.1%).
53.5% of net sales are generated abroad.