Stifel announced on Friday that it had raised its recommendation on Teleperformance shares from 'hold' to 'buy', believing that the customer experience outsourcing specialist was on the cusp of a 'new beginning'.

In a note released this morning, the research firm, which explained that it had raised its earnings forecasts for the group following the acquisition of Majorel, said it expected fiscal 2024 to mark an "inflexion" after the difficulties encountered last year.

The analysts thus anticipated a gradual improvement in sales growth, with the maintenance of a "solid" performance in terms of profit margins.

'Furthermore, we consider the current valuation of the stock to be attractive, insofar as it does not represent the company's solid fundamentals or its status as a leader within the sector, while incorporating an excessively negative scenario regarding the implications of AI', he adds.

While acknowledging that the stock could prove volatile in the short term, Stifel sees an attractive risk/return profile in the prospect of a revaluation that could, in his view, extend over several years and lead the share price to more than double in three years.

His price target has thus been raised from 170 to 200 euros.

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