Teleperformance shares soared by almost 6% on the Paris Bourse on Friday, following a recommendation upgrade by Stifel, which believes that the customer experience outsourcing specialist is on the cusp of a "new beginning".

Shortly before 11:00 a.m., the share price rose by 5.9%, by far the biggest gainer on a CAC 40 index that was up just 0.1%.

In a note published in the morning, Stifel analysts said they had raised their recommendation on the share from 'hold' to 'buy', with a price target raised from 170 to 200 euros.

The research firm, which explained that it had revised upwards its earnings forecasts for the group following the acquisition of Majorel, said it expected the 2024 financial year to mark an 'inflexion' after the difficulties encountered last year.

Stifel thus anticipates a gradual improvement in sales growth, with a continued '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', it adds.

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

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