Update shared on13 Sep 2025
Fair value Decreased 2.38%Analysts have trimmed their price targets for Teleperformance to €114.93, citing persistent macroeconomic headwinds, subdued client demand, and increased risk premiums, while maintaining a constructive long-term view.
Analyst Commentary
- Lowered growth expectations due to persistent macroeconomic challenges impacting client spending across key end-markets.
- Cautious near-term outlook amid ongoing operational headwinds and subdued demand for outsourced business services.
- Analysts remain constructive on long-term fundamentals, pointing to robust market positioning, scale advantages, and digital transformation initiatives.
- Price targets reduced to reflect updated earnings forecasts and weaker visibility into revenue acceleration.
- Revisions incorporate greater risk premiums given recent share price volatility and sector valuation compression.
What's in the News
- RBC Capital lowered Teleperformance’s price target to EUR 105 from EUR 125 but maintained an Outperform rating (Periodicals).
- Teleperformance updated 2025 guidance, now expecting group like-for-like revenue growth at the lower end of the initial +2% to +4% range (Key Developments).
- The company launched a EUR 1.5 billion share buyback program, authorizing repurchases of up to 10% of its issued share capital (with a separate EUR 100 million tranche running from June 2025 to November 2025), for purposes including market liquidity, M&A, employee incentive plans, and share capital reduction (Key Developments).
- At its Capital Markets Day, Teleperformance unveiled the ‘Future Forward’ strategic plan, focusing on becoming an AI-enabled company, introducing the proprietary TP.ai FAB platform, and targeting new markets and high-margin business models with significant investment over the next three years (Key Developments).
- Guidance for 2026-2028 signals a return to sustained mid-single digit like-for-like revenue growth, targeting 4-6% by 2028 (Key Developments).
Valuation Changes
Summary of Valuation Changes for Teleperformance
- The Consensus Analyst Price Target has fallen slightly from €117.73 to €114.93.
- The Consensus Revenue Growth forecasts for Teleperformance remained effectively unchanged, at 2.4% per annum.
- The Discount Rate for Teleperformance remained effectively unchanged, moving only marginally from 9.18% to 9.30%.
Disclaimer
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