Sopra Steria: Oddo likes Ordina deal
(CercleFinance.com) - Oddo BHF has reiterated its "outperform" rating on Sopra Steria, along with its target price of E236, judging the agreement with Ordina's board of directors for a cash offer of E526m as the right move.
While it acknowledges that some may consider the acquisition multiple too high compared to Sopra Steria's current multiple, the broker believes that the price paid seems reasonable, after synergies and given the strategic interest of the target.
With such an operation, Sopra Steria will become a major player in the Benelux region, which should enable it to implement the same strategy as in France and gradually achieve margins of over 10% in the region, the analyst points out.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
While it acknowledges that some may consider the acquisition multiple too high compared to Sopra Steria's current multiple, the broker believes that the price paid seems reasonable, after synergies and given the strategic interest of the target.
With such an operation, Sopra Steria will become a major player in the Benelux region, which should enable it to implement the same strategy as in France and gradually achieve margins of over 10% in the region, the analyst points out.
Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.