Sopra Steria: stock leads, with Oddo increasing target price

(CercleFinance.com) - Oddo confirms its "outperform" rating on Sopra Steria shares, having increased its target price for them to 216 euros, against 205 euros previously.


The analyst reports the surprise appointment, announced last night, of Cyril Malargé as the group's chief executive. He will succeed Vincent Paris as of 1 March.

Sopra Steria also announced sound preliminary results, which exceeded all estimates. Organic growth is expected to be between 6.3 and 6.4% (guidance > 6%, consensus: 6.4%, Oddo: 6.6%). FCF is expected to exceed 250 million euros, compared with the guidance of 150 to 200 million euros.

Pending final 2021 results and a guidance for 2022, analysts maintain their forecasts for 2022, including organic growth of +4.9%, MOA of 8.7% and FCF of 240 million euros: they base their target price on excess 2021 FCF.

Talk of the town, the share is currently leading the SBF 120, up over 6% at noon.


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