In a report released today, Charles Brennan from Jefferies maintained a Hold rating on Capgemini SE, with a price target of €145.00.
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Charles Brennan’s rating is based on Capgemini’s recent decision to allocate a significant portion of its market capitalization towards acquiring WNS. This strategic move, which uses most of its balance sheet flexibility, is being justified as a step towards enhancing its AI capabilities. However, there is skepticism regarding whether the Business Process Outsourcing/Services sector will truly benefit from AI advancements or if it might face challenges due to them.
Given these uncertainties, Brennan has opted for a Hold rating, suggesting that while there is potential for growth, the risks associated with the AI integration and its impact on the sector warrant a cautious approach. Investors are advised to wait and see how these developments unfold before making any aggressive investment decisions.