(Boursier.com) — Among the latest publications well received on the Parisian market, Wavestone figure in a good position. The title of the consulting group advances by 4.7% to 48.4 euros while the company achieved a consolidated turnover of 139.1 ME in the third quarter of its 2022-2023 financial year, up 14% on one year (+6% at constant exchange rates and scope). At the end of the first nine months of the financial year, consolidated sales amounted to 376.2 ME, up +11%, of which +5% at constant scope and exchange rates.
The firm remains confident that it will continue to grow in the months to come, maintaining intense commercial activity directed towards the best-oriented sectors. The objective of an annual turnover of more than 525 ME is reaffirmed, taking into account the consolidation of PEN Partnership and Coeus Consulting, with a current operating margin of around 15% over the financial year.
Despite the increasingly reassuring messages delivered by management in recent weeks, Wavestone has been underperforming on the stock market, with a flat performance for 3 months (+2% vs +11% on average for the sector), explains Oddo BHF. The share therefore did not support the generalized rerating of the European IT Services sector (over 10%), and is traded at less than 11x EBIT 12m fwd, an attractive level in absolute terms (below historical averages) and in relative terms ( currently at par with peers, vs historic premium), while earnings growth prospects in the current context (soft landing), fundamentals, positioning and governance argue for an appreciation of multiples. In this context, the analyst maintains his ‘outperform’ opinion and raises his target from 52 to 54 euros on the basis of his new forecasts and market data.
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