Oddo BHF maintains its 'outperform' rating on Teleperformance shares, with an unchanged target price of 238 euros.

Last night, Teleperformance reported sales of 1989 ME (-3.3% on a reported basis), slightly below expectations (Oddo was expecting 2054 ME; consensus 2056 ME).

Teleperformance management is now targeting organic growth of around 6% excluding COVID at constant exchange rates (which is already in line with Oddo BHF's expectations), compared with the previous estimate of between 6 and 8%. However, the 2023 EBITA target remains unchanged at around 16%.

The analyst considers the quarterly performance to be 'mixed', and believes that it seems to represent a low point, with Q4 likely to be a little better oriented.

Organic growth in 2024 nevertheless remains uncertain, so that the Group's revaluation should be a medium-term process", concludes the broker, before adding that Teleperformance remains an undeniable "Value" profile, with a valuation of 6.7x EV/EBITA 2024.

Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as decision-making aids 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.