Oddo BHF has reiterated its 'outperform' rating on Sopra Steria, while raising its target price from 254 to 290 euros, highlighting 'operational performance and strategic decisions that favor continued rerating'.

Yesterday's 10% rise in the share price seems justified by the rerating induced by good 2023 results, 2024 guidance and the planned disposal of SBS "which crystallizes the value of this asset while simplifying the group's structure".

Despite an excellent 12-month performance, the share is still valued at 10 times EV/EBIT 2024 (after SBS and recurring 'exceptional' expenses), which is still a slight discount to European peers (over 10.5 times EV/EBIT)", he adds.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.