(CercleFinance.com) – Sopra Steria shares rose by nearly 1% at the end of the day after announcing a conditional agreement to launch a public tender offer (OPA) on all Ordina shares at a price of 5, 75 euros per share (excluding the proposed dividend), i.e. a premium of 36% on the closing price on March 14.
Following this announcement, Invest Securities reiterates its ‘buy’ recommendation and its target price of 228 euros on Sopra Steria.
While it recognizes that the timing of the operation ‘is not ideal’, the design office believes that ‘the opportunity could not be refused’ and that the takeover of Ordina, ‘with very close DNA that of Sopra’, is fully in line with the strategy pursued by the new CEO.
‘Sopra is building a strong position in Benelux and increasing its exposure to the public sector, without hampering its growth and the improvement of its profitability and with a non-negligible accretive impact’, underlines the analyst.
Oddo BHF also reiterates its ‘outperformance’ opinion and its target price of 236 euros on Sopra Steria, deeming the agreement with Ordina’s board of directors for a cash offer for an amount of 526 million euros positive.
While it acknowledges that ‘some might consider the acquisition multiple too high compared to Sopra Steria’s current multiple’, the research department thinks that the price paid ‘seems reasonable after synergies and in view of the strategic interest of target’.
‘With such an operation, Sopra Steria will become a major player in the Benelux zone, which should enable it to implement the same strategy as in France and gradually achieve margins of more than 10% in the zone’, underlines the analyst.
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