Update shared on 27 Nov 2025
Fair value Decreased 2.95%Analysts have lowered their fair value estimate for Teleperformance from €108.60 to €105.40. This change is due to a reduced price target and modest adjustments to growth and profitability assumptions.
Analyst Commentary
Market participants have provided mixed views on Teleperformance following the recent target revision. The latest street research highlights both positive and negative considerations regarding the company’s valuation and operational outlook.
Bullish Takeaways
- Bullish analysts continue to see long-term value in Teleperformance’s robust global footprint, which supports resilience in an evolving market environment.
- Growth potential remains in the company’s digital transformation initiatives, which are expected to contribute to long-term profitability.
- Despite the lower price target, some remain optimistic that stable execution in core business segments could help Teleperformance navigate near-term pressures.
- The group’s efforts to align cost and operational structures are seen as constructive steps for margin improvement over time.
Bearish Takeaways
- Bearish analysts cite concerns about slowing growth forecasts, which have prompted the reduction in price target and lowered fair value estimates.
- The current Hold rating reflects uncertainty about Teleperformance’s ability to rapidly regain its historic earnings momentum.
- Rising competitive pressures in key markets are seen as potential headwinds for both revenue and profitability.
- The modest adjustments to profitability expectations suggest ongoing challenges in sustaining elevated margins in the near term.
What's in the News
- Teleperformance updated its 2025 earnings guidance, now expecting group like-for-like revenue growth between 1.0% and 2.0%. This is a change from the previous range of 2% to 4% (Corporate Guidance: Lowered).
- The company secured a position on the Crown Commercial Services MYR 6295 framework for both Lot 1 (Citizen Experience) and Lot 2 (Business Services), reinforcing its role as a significant supplier to the UK public sector (Client Announcements).
- Teleperformance was added to the CAC Next20 Index, highlighting its visibility within the French equity market (Index Constituent Adds).
- The company was recently removed from another index, reflecting shifts in its market positioning (Index Constituent Drops).
Valuation Changes
- Fair Value: Lowered from €108.60 to €105.40, indicating a modest decline in the estimated intrinsic value per share.
- Discount Rate: Increased slightly from 9.65% to 9.69%.
- Revenue Growth: Increased marginally, now projected at 1.66% compared to the previous 1.65% assumption.
- Net Profit Margin: Decreased from 6.36% to 6.33%.
- Future P/E: Decreased from 11.83x to 11.55x, reflecting lower anticipated valuation multiples.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.