Capgemini: Hold Rating Amid Cautious Market Outlook and Steady Bookings

Analyst Charles Brennan of Jefferies maintained a Hold rating on Capgemini SE (0HAZ – Research Report), retaining the price target of €187.00.

Charles Brennan has given his Hold rating due to a combination of factors including the cautious guidance at the start of the year, despite the company’s results aligning with expectations. The initial conservative outlook for 2025 stems from previously overestimating the market recovery speed in 2024, which justifies a more cautious approach moving forward.
Additionally, while Capgemini’s bookings are strong, the share price will largely depend on the upcoming discussions and whether there are elements beyond bookings that necessitate a cautious stance. The company’s organic growth remains negative, although slightly improved from the previous quarter, and margins are consistent with forecasts. Therefore, while certain indicators such as headcount and bookings show potential, they are balanced by the conservative outlook, leading to the Hold recommendation.