Capgemini: Stifel raises target price

(CercleFinance.com) - Stifel has reinstated its "buy" recommendation on Capgemini shares, having increased its corresponding target price from 150 euros to 170 euros, assuming average annual EPS growth of 12% over 2020-2023.


"Capgemini's FY25 guidance bolsters our long-term positive view on the stock," the broker judges, pointing to an increased management focus on consistency through sustained double-digit growth in Cloud, Data & AI and Intelligent Industry services.

"Furthermore, Capgemini also expects operating margins to improve consistently by c.40bps p.a. to reach 14% in 2025 from 11.9% in 2020 driven by its top-line momentum coupled with new working models in the post COVID-19 world, Altran synergies and further industrialisation and automation", analysts add.

The share is up about 0.3% on Wednesday afternoon, outperforming a slightly negative CAC 40 index.


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