(CercleFinance.com) – AlphaValue announced on Monday that it had reduced its target price on Atos, which it reduced to 10.2 against 21.1 euros so far, while renewing its buy recommendation on the title.
In a research note, the design office justifies its decision by the deterioration of the technology group’s cash flow and by the risk of dilution associated with the proposed capital increase of 900 million euros.
If he considers that the sale of Tech Foundations constitutes “good news”, just like its purchase price announced at two billion euros, the Parisian firm judges that this fundraising, but also the project aiming to eliminate approximately a billion euros of working capital requirements, represent much less positive surprises.
Regarding Eviden, the cybersecurity subsidiary to be split, AlphaValue points out that the entity will post a net debt of 1.9 billion euros, or 3.9 times its Ebitda, a ratio which should be reduced to 2x by 2025. on the basis of a recovery scenario that the analyst considers ‘ambitious’ in a period which, according to him, promises to be ‘unstable’.
‘Atos is clearly penalized by a loss of confidence which follows all the disappointments that have punctuated the last years’, he concludes. ‘There is nothing to hope for until the launch of the capital increase’.
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