Altran: Bryan Garnier still a buyer after Aricent acquisiti
(CercleFinance.com) - Bryan Garnier reiterates its "buy" rating on Altran Technologies, a fair value of 17 euros, following the acquisition of Aricent whose price reflects the stake in an R&D market that is becoming increasingly global.
The broker deems that this transaction will enhance adjusted EPS by 6% in 2020, solely on the basis of cost synergies, whereas revenue synergies - which it does not take into account at this stage - could raise the accretive impact on earnings to 11%.
The broker also notes that Altran is trading at a 2019 EV/EBIT multiple of 9.7x, representing a discount of around 10% compared to the average of outsourced R&D players and 20%-25% compared to IT Services companies - most of which are Indian - which operate in this segment.
Copyright (c) 2018 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.
The broker deems that this transaction will enhance adjusted EPS by 6% in 2020, solely on the basis of cost synergies, whereas revenue synergies - which it does not take into account at this stage - could raise the accretive impact on earnings to 11%.
The broker also notes that Altran is trading at a 2019 EV/EBIT multiple of 9.7x, representing a discount of around 10% compared to the average of outsourced R&D players and 20%-25% compared to IT Services companies - most of which are Indian - which operate in this segment.
Copyright (c) 2018 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.