Analyst Hannes Leitner of Jefferies maintained a Hold rating on Capgemini SE, with a price target of €145.00.
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Hannes Leitner has given his Hold rating due to a combination of factors that reflect both positive and cautious elements in Capgemini SE’s recent performance. The company’s second-quarter results were generally solid, with key financial figures slightly exceeding expectations. However, despite these positive results, the overall market environment remains challenging, and the improvements may not be substantial enough to significantly alter the company’s outlook.
While Capgemini’s organic growth figures showed a slight improvement compared to consensus expectations, the increase in restructuring costs has impacted the quality of earnings, as evidenced by a decline in IFRS EBIT. Additionally, although the company reported a positive organic free cash flow, the flat bookings in the second quarter and the marginally improved book-to-bill ratio suggest a cautious approach. The narrowed revenue guidance for the fiscal year further indicates limited growth prospects, leading to the Hold rating as investors weigh these mixed signals.
According to TipRanks, Leitner is a 5-star analyst with an average return of 16.7% and a 66.26% success rate. Leitner covers the Technology sector, focusing on stocks such as Wise PLC Class A, Worldline, and Adyen.
In another report released on July 15, Morgan Stanley also maintained a Hold rating on the stock with a €168.00 price target.