(CercleFinance.com) – Oddo confirms its ‘outperformance’ rating on the Sopra Steria share, with a price target raised from 228 to 231 euros.
The group published a turnover of 1268 ME for the 1st quarter, a figure marginally higher than the expectations of Oddo (1248 ME) and the consensus (1260 ME), thanks to organic growth ‘a little better than’ expected at 6.5%’ reports the broker.
Oddo believes that the second quarter should be ‘in the same vein’, in particular thanks to the numerous recruitments made during the first three months of the year which enabled Sopra Steria to post an increase in the productive workforce of +5% at the end of March (y/y) against +3% in December (y/y).
‘Despite a deteriorating macro context, Sopra Steria’s management says it sees no harbinger of a slowdown’, underlines the analysis office.
At this stage, Sopra Steria therefore seems slightly ahead of its annual guidance, but it is logical that the company does not change its guidance so early in the year, especially given the current macro (organic growth of 5% to 6 %; MOA from 7.5% to 8%: FCF >250 ME), concludes Oddo.
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