(CercleFinance.com) – Oddo BHF maintains its ‘outperform’ rating on Sopra Steria shares, with a price target lowered from 260 to 254 euros after the group published organic growth in the 3rd quarter ‘slightly below expectations’ (turnover of 1345, 1% below expectations).
Management mentions a gradual slowdown in activity during the quarter, which should continue in France, without there being a sudden drop, reports the broker.
In this context, Sopra Steria management confirmed its 2023 guidance, namely organic growth and an FCF of at least 300 ME.
At this stage, the tone is relatively cautious for 2024. According to management, organic growth should be lower than the traditional range of 4 to 6% (the consensus is currently 4.2% for the org).
‘Overall, these figures remain solid compared to peers and close to expectations’, concludes Oddo BHF for whom ‘the fall in the stock therefore seems exaggerated, even if it must be admitted that the dynamics of the stock, like that of the rest of the sector, will remain mixed over the coming months’.
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