Capgemini: Stifel still a buyer after sales announced
(CercleFinance.com) - Stifel confirms its buy rating on the Capgemini stock with an unchanged target price of 230 euros following the group's Q1 2022 figures.
"We are excited by the broad-based acceleration in revenue growth in Q1 and expect revenue momentum to remain robust in 2Q22 on the back of the 24% headcount increase and optimistic comments from management on current demand," the analyst says.
Stifel believes that the operating margin expansion forecast for FY2022 is entirely achievable, given the leverage of the IT services business model and the revenue momentum.
"We retain our positive view on Capgemini driven by - (1) the consistent top-line growth on the back of double-digit growth in Cloud, Data & AI and Intelligent Industry services, and (2) consistent operating margin expansion in the coming years," the broker adds.
The analyst targets organic revenue growth of 9.2% in Q2 and 10% for FY2022 (compared to CC's FY22 revenue growth forecast of 8-10%).
The share is currently down about 0.4%, only just above the main index in Paris.
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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.
"We are excited by the broad-based acceleration in revenue growth in Q1 and expect revenue momentum to remain robust in 2Q22 on the back of the 24% headcount increase and optimistic comments from management on current demand," the analyst says.
Stifel believes that the operating margin expansion forecast for FY2022 is entirely achievable, given the leverage of the IT services business model and the revenue momentum.
"We retain our positive view on Capgemini driven by - (1) the consistent top-line growth on the back of double-digit growth in Cloud, Data & AI and Intelligent Industry services, and (2) consistent operating margin expansion in the coming years," the broker adds.
The analyst targets organic revenue growth of 9.2% in Q2 and 10% for FY2022 (compared to CC's FY22 revenue growth forecast of 8-10%).
The share is currently down about 0.4%, only just above the main index in Paris.
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.