Sopra Steria: Oddo still a buyer, trims target price
(CercleFinance.com) - While trimming its target price for Sopra Steria shares from 218 euros to 214 euros, Oddo reiterates its "outperform" on them, as it believes it is unjustified that a growth stock with solid FCF generation can be trading at less than 7x EV/EBIT 2023e.
However, cautiously, the broker has trimmed its growth forecast for 2023 to +3% in organic growth, with a volume effect of just 1.5% and a price effect of 1.5%, driven by good on-board growth expected in H1.
With inflationary risks outpacing price increases, Oddo has also reduced its EPS estimates (-4% for 2023) for the IT services group.
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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.
However, cautiously, the broker has trimmed its growth forecast for 2023 to +3% in organic growth, with a volume effect of just 1.5% and a price effect of 1.5%, driven by good on-board growth expected in H1.
With inflationary risks outpacing price increases, Oddo has also reduced its EPS estimates (-4% for 2023) for the IT services group.
Copyright (c) 2022 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.