Capgemini: Credit Suisse raises target price

(CercleFinance.com) - Credit Suisse has updated its stance on the Capgemini share, after the French ESN announced a forthcoming takeover bid on Altran, ahead of its interim results, which are due to be published on 30 July.


Still a buyer ("outperform" rating maintained), analysts have raised their target from 130 euros to 140 euros, meaning upside potential of 23%.

"Investors appear frustrated that growth is unlikely to accelerate in 2Q19," the broker's note says. However, Credit Suisse says that this is "too short-sighted," as the trend should improve in the second half of the year, supported by a favourable comparison basis.

The broker adds, "the proposed Altran deal is strategically sensible and this should help support a re-rating".


Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.