Analysts have lowered their fair value price target for Teleperformance from €114.93 to €112.20. This change reflects recent downward revisions across revenue growth, profit margin, and future earnings expectations.
Analyst Commentary
Recent research updates have highlighted both positive and cautionary themes regarding Teleperformance's outlook following the reduced price targets.
Bullish Takeaways- Bullish analysts note that despite the lowered price targets, ratings such as Buy and Outperform are being maintained. This reflects continued confidence in Teleperformance's long-term value proposition.
- Analysts highlight that the company continues to outperform sector peers in some key operational areas and maintains a favorable risk-reward profile.
- There is optimism about management's ability to execute on strategic adjustments, which may support profitability recovery in the medium term.
- Some analysts see the current valuation as compelling, given the significant fall in share price compared to historic multiples and adjusted growth forecasts.
- Bearish analysts have flagged ongoing revenue growth revisions as a cause for caution and cite uncertain macroeconomic conditions.
- Narrowing profit margins continue to weigh on valuation and have prompted downward adjustments to earnings forecasts for the next fiscal year.
- Analysts are concerned that future growth may be hampered by sector headwinds and intensified competition. This could potentially increase the volatility of earnings performance.
- The consensus among several analysts is that further downside risk remains if operational execution does not improve as anticipated in the coming quarters.
What's in the News
- RBC Capital lowered its price target for Teleperformance to EUR 105 from EUR 125 and maintains an Outperform rating (Periodical).
- Teleperformance SE was added to the CAC Next20 Index, which reflects its presence among notable French companies (Key Development).
- The company completed a share buyback, repurchasing 373,855 shares for €31.3 million and finalizing its latest buyback tranche (Key Development).
- Teleperformance updated its 2025 earnings guidance and now expects Group like-for-like revenue growth at the lower end of the +2% to +4% range (Key Development).
Valuation Changes
- The consensus analyst price target has decreased modestly, falling from €114.93 to €112.20.
- The discount rate has edged down slightly, moving from 9.30% to 9.23%.
- Revenue growth expectations have been trimmed, now at 2.28% compared to the previous 2.38%.
- The net profit margin has declined marginally, from 6.86% to 6.80%.
- The future P/E has fallen, with the updated estimate at 11.10x compared to the prior 11.26x.
Disclaimer
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