(Boursier.com) — OVHcloud fell another 4% to 9.70 euros on Friday, still weighed down by its warning on its results. Over the week, the title fell by 12%. The cloud computing services specialist unveiled revenue of 439 ME for the first half of 2023, up 15% (+12.8% like-for-like) with an adjusted EBITDA of 156 ME, i.e. a margin 35.4%… Management is now counting on organic growth in turnover of between 13% and 14% this year, against a previous forecast of 14% to 16%. This objective takes into account the good performance of the first half of the year and the recent changes in demand, which in the short term reflect a delay in certain migration projects to the cloud or the extension of existing infrastructures. A cost control plan has been put in place to improve the margin rate from the second half of 2023 and to continue to control Capex.
In this context, OVHcloud is aiming for an adjusted EBITDA margin above 36% over the financial year (compared to close to 39% previously) and recurring Capex and growth within the lower bounds of their respective objectives of 16% to 20% and from 28% to 32% of turnover.
Among the latest brokerage reviews, Citi adjusted its target from 13 to 12 euros (‘neutral’), Exane BNP Paribas lowered the cursor from 20 to 16 euros (‘outperform’) and SocGen reduced its target from 23 to 21 euros remaining for purchase. JP Morgan had already lowered its target price from 19 to 14 euros. “OVH posted a resilient performance in the second quarter, but overall first-half earnings missed the consensus by about 4%,” said Morgan Stanley, which is “underweight… also the market is the reduction in the outlook for the full year: “Given the slowdown in cloud demand reported by several major players, it is not so surprising that this has affected OVH’s expectations”, explains MS. Margin guidance above 36% suggests a reduction of about 5 points from consensus expectations, but the new revenue growth target is not significantly different from current analyst expectations, the bank points out.
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