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.



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