Bank of America has reiterated its buy recommendation on Capgemini following the IT group's earnings release last week, but has lowered its price target to 145 EUR based on a market price evaluation ("mark-to-market").
The broker acknowledges a strong fourth quarter and, while it considers the initial target for 2026 organic growth of between 2% and 3.5% to be cautious, it notes that the median target is roughly 30 basis points above consensus.
BofA highlights an acceleration in organic growth across all regions, the early completion of the WNS acquisition, and generative AI accounting for more than 10% of orders in the fourth quarter.
Raising its EBITDA expectations, the intermediary also believes the stock's relative valuation is likely to support the share price, which is at its lowest levels in several years and trading at a discount of around 50% compared to its peers.
Capgemini SE is one of the world leaders in providing IT services. The group's activity is organized around 4 sectors:
- system design, development and integration;
- outsourcing services: management of applications and infrastructures;
- technology and engineering services: assistance and support services for internal IT teams;
- consulting services.
Net sales are distributed geographically as follows: France (19.8%), the United Kingdom and Ireland (12.5%), Europe (31%), North America (28%), Asia/Pacific and Latin America (8.7%).
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