Invest Securities has reiterated its 'buy' rating on Sopra Steria, with an adjusted price target of €222 to €228, a new target with a potential upside of +13%, following the group's first-quarter trading update.
'Like other IT services players, the start of 2023 has been solid, supporting cautious 2023 guidance that is likely to be raised once management has more visibility over the second half of the year', says the analyst.
The research firm adds that the company's 'balanced profile (defensive business mix, reasonable valuation, new management ambitions and accretive impact of acquisitions)' is 'still attractive in the current context'.
Copyright (c) 2023 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.
Sopra Steria Group is one of the leading French companies providing IT services. The activity is organized mainly around three areas:
- consulting services: strategic consulting, implementing of restructuring projects and development towards new technologies, etc.;
- systems integration and solutions: design and implementation of Internet technology solutions (portals, merchant sites, Intranet and Extranet networks, etc.), integration of ERP solutions, implementation of application solutions (customer relationship management, HR management, etc.). The group also offers subcontracting solutions for providing technical support to users and application maintenance;
- outsourcing services and operation of professional processes: supervision, administration and operation of IT infrastructures, operation of finance, administration, human resources functions, etc.
Net sales break down by market between industry (29.6%), services (24.6%), public sector (19.4%), finance (16%), telecommunications and media (7.2%) and retail (3.1%).
53.5% of net sales are generated abroad.