PARIS, May 31 (Reuters) – Capgemini fell on the Paris Stock Exchange on Friday after two lowering of recommendations on the stock by JP Morgan and Jefferies, the two brokers citing a drop in demand for the French group’s digital services.
At 09:45 GMT, Capgemini shares were down 5.35%, the biggest drop in the CAC 40, which lost 0.17% at the same time.
JP Morgan revised its recommendation to “neutral” from “outperform” and indicates in a note that a number of large-cap technology groups are expected to show limited growth this year, notably citing the example of Accenture, which forecasts a slowdown in its organic growth.
The broker adds that its consensus on Capgemini already anticipates a solid rebound in the French group’s growth by 2025.
“We see little room for an increase, because it is already integrated into the consensus,” specifies JP Morgan.
For its part, Jefferies lowered its recommendation to “hold” from “buy”, citing the group’s disappointing first quarter results and unencouraging recovery forecasts, while indicating that Capgemini is “a well-managed company”.
In a note, the broker adds that Capgemini stock has recently shown signs of outperformance compared to its competitors. “This erodes a large part of the discount,” emphasizes Jefferies. (Written by Augustin Turpin, edited by Blandine Hénault)
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