RBC announced on Thursday that it had lowered its target price for Teleperformance from €210 to €125, in recognition of the stock's high risk profile.

In a note released early this morning, the Canadian broker explains that the perception of risk associated with the customer experience outsourcing specialist currently makes it a "no-go zone" for many investors.

In his view, however, the market is ignoring the prospect of a free cash flow (FCF) yield expected to reach 17% this year, a level likely to attract the most opportunistic investors.

In his view, stock market valuations have also become 'too cheap to ignore'.

'While it's true that it's difficult to identify any short-term catalysts (...), we believe that simply stopping disappointing investors would be sufficient grounds for a stock market revaluation", he concludes.

While maintaining its 'outperform' opinion on the stock, the broker now rates it as 'speculative'.

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