Capgemini: Bryan Garnier remains a buyer; ups target price
(CercleFinance.com) - Bryan Garnier has reinstated its "buy" rating on the Capgemini stock and has raised its fair value from 119 euros to 124 euros, judging that the IT services giant is "gaining more credibility on growth acceleration".
The broker explains that it has reduced its medium-term tax rate assumption from 33% to 30% (+3 euros) and has raised its adjusted EPS estimates for 2019 and 2020 (+2 euros) by 1% and 2% respectively, including LiquidHub from May 2018.
"Growth acceleration in Q4 2017 solidifies Capgemini's 5-7% lfl revenue growth scenario for 2019-20, while the company remains on track to deliver an operating margin of at least 12.5% in 2020," the broker continues.
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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.
The broker explains that it has reduced its medium-term tax rate assumption from 33% to 30% (+3 euros) and has raised its adjusted EPS estimates for 2019 and 2020 (+2 euros) by 1% and 2% respectively, including LiquidHub from May 2018.
"Growth acceleration in Q4 2017 solidifies Capgemini's 5-7% lfl revenue growth scenario for 2019-20, while the company remains on track to deliver an operating margin of at least 12.5% in 2020," the broker continues.
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.