Sopra Steria: Invest Securities upgrades stock
(CercleFinance.com) - Invest Securities has upgraded its rating on the Sopra Steria stock from "neutral" to "buy," while increasing its corresponding target price from 130 euros to 163 euros, after it raised its earnings estimates, in addition to a reduction in both the beta in its valuation model and the applicable risk premium.
Analysts say that in 2021 Sopra Steria should benefit from a recovery, which, although moderate, seems relatively solid. Above all, Sopra's Banking Software division should emerge from three difficult years and see its EBITA margin recover as a result of lower costs, they say.
While SBS represents a major factor of uncertainty, which justified the application of a higher risk premium on the group, the analyst believes that the normalisation of the division's performance will enabe the stock to recover.
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