Capgemini: BarCap downgrades buy rating

(CercleFinance.com) - This morning Barclays Capital downgraded its buy rating on the group Capgemini; from "overweight" it now recommends investors "weight in line" the stock.


“Global and European GDP forecasts have been lowered and this will have a direct impact on IT budgets," the broker states in its report. While the effect will not be immediate, with sector performance lagging the business cycle, this " this growth moderation will only impact late '19 and will have a more pronounced effect in '20” BarCap says.

Even so, analysts have cut their EPS estimates for the sector by 3.6% for 2019, followed by 6.7% in 2020. Although the shares of this compartment have already lost some ground, “it continues to trade at a premium, something which wasn't the case in prior downturns,” the note says.

Barclays Capital has therefore downgraded its rating on Capgemini and Hexagon, and only sticks to buy.

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