Deutsche Bank announced on Monday that it had lowered its price target for Telepeformance shares from 140 to 110 euros, as it felt that many questions remained unanswered regarding the company's future prospects.

The research firm - which is maintaining its 'hold' recommendation on the share - stresses that significant clouds still surround the French group's short-, medium- and long-term prospects.

In the immediate term, the analyst says he sees no sign of an imminent pick-up in activity in call centers, a business in which American operators have cut almost 20% of their jobs since the end of 2020.

The number of employees in the sector is now below its 1996 level, he argues, with the rate of job destruction still reaching 9% in January this year, he continues.

More generally, Deutsche notes that the rhetoric from both customer experience outsourcing specialists and business process management (BPO) players has been tinged with caution of late.

With customer capital spending still under pressure, growth looks set to be weak in the first half of fiscal 2024, the analyst concludes.

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.