Teleperformance: RBC slashes target price

(CercleFinance.com) - RBC announced on Thursday that it had lowered its target price for Teleperformance shares from E210 to E125, given the stock's high risk profile.


In morning comments, the Canadian broker explains that the perception of risk associated with the customer experience outsourcing specialist currently makes it a "no-go zone" for many investors.

However, in its view, the market is ignoring the prospect of a free cash flow (FCF) yield that is expected to reach 17% this year, a level likely to attract the most opportunistic investors.

In its opinion, stockmarket valuations have also become too cheap to ignore.

While it's true that it's difficult to identify any short-term catalysts (...), we believe that simply stopping disappointing investors would be sufficient grounds for a stock market revaluation, it concludes.

While maintaining its 'outperform' opinion on the stock, the broker now rates it as 'speculative'.


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