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ATO: Cybersecurity Contracts And AI Expansion Will Support Balanced Outlook

Digital, Cloud And Cyber Trends Will Boost Services Despite Risks

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ATO
AnalystHighTarget
Not Invested
Published 11 Aug 2025

Update shared on 15 Dec 2025

Fair value Increased 34%
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AnalystHighTarget's Fair Value
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1Y
89.2%
7D
-17.4%

Analysts have raised their price target for Atos from approximately €41 to €55 per share, reflecting a higher fair value assessment despite more cautious assumptions on revenue growth and profitability.

What's in the News

  • Atos confirmed full year 2025 guidance, expecting revenue of over €8 billion, which supports the upgraded valuation narrative. (Corporate guidance)
  • The company won a major cybersecurity contract of up to €326 million from the European Commission under the CLOUD II DPS MC17 framework, positioning Atos as lead provider of critical cyber services to EU institutions. (Client announcement)
  • Atos strengthened its AI and cloud portfolio with the launch of the Autonomous Data and AI Engineer solution on the Atos Polaris AI Platform, integrated with Microsoft Azure, to automate complex data and AI workflows and reduce operational costs. (Product announcement)
  • The company introduced Atos Managed OpenShift AI (AMOS AI), which combines Red Hat OpenShift AI with Atos managed services to help clients meet sovereignty and regulatory requirements across hybrid and multi cloud environments. (Product announcement)
  • Atos expanded its cybersecurity capabilities with a new Modern Security Operations Center in Seville and an AI driven partnership with Qevlar AI to enhance cyber alert investigation and managed security services. (Business expansion, strategic alliance)

Valuation Changes

  • Fair Value: increased from approximately €41 to €55 per share, representing a substantial upward revision to the target price.
  • Discount Rate: risen slightly from 12.1% to 12.3%, reflecting a marginally higher perceived risk or required return.
  • Revenue Growth: fallen significantly from a projected 1.76% increase to a 4.03% decline, indicating a more conservative outlook on top line trends.
  • Net Profit Margin: reduced markedly from 6.18% to roughly 0.01%, implying expectations of sharply lower profitability.
  • Future P/E: surged from 2.36x to about 2,082.90x, driven largely by the combination of a higher fair value and much lower projected earnings.

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