Sopra Steria: Invest Securities raises target price

(CercleFinance.com) - After discussions with the company, Invest Securities says that the cyber-attack suffered by Sopra Steria will have a relatively moderate impact and above all just a punctual effect on its results.


Organic growth will be impacted by around -4pts in Q4 2020, whereas the business should no longer be negatively impacted from the start of 2021. In terms of costs, about 20 million euros will be knocked off the EBITA margin as a result of the "missing" revenue, although this is offset by the fact that the company was on track to reach the upper end of its guidance range (it will therefore be around 6.5% vs. a guidance of 6% to 7% previously), Invest Securities says.

Only FCF will be more impacted in 2020, due to the postponed payment of insurance premiums until 2021. After raising its estimates and updating market parameters, the broker has increased its target price to 130 euros, vs. 99 euros, the analyst adds.

Even so, Invest Securities confirms its neutral rating on the stock - it is currently trading at about 125 euros, pretty much flat in early trading in Thursday.



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