Update shared on 13 Dec 2025
Fair value Decreased 25%Narrative Update on OVH Groupe
Analysts have reduced their price target on OVH Groupe from €15.90 to €12.00, citing slower expected revenue growth, softer profit margin assumptions, and a higher discount rate that more than offset a modest increase in projected future valuation multiples.
What's in the News
- OVHcloud signed a cloud hosting agreement with clearing house LCH SA, migrating selected services to a SecNumCloud qualified environment to enhance resilience, security, and scalability while meeting strict regulatory requirements (client announcement).
- At the OVHcloud Summit 2025 in Paris, the group unveiled new AI and quantum offerings, including a professional digital twin solution, expanded AI inference infrastructure with SambaNova, an agentic AI program for SaaS vendors, and its first European Quantum as a Service platform with access to Pasqal's 100 qubit Orion Beta QPU (product related announcement).
- OVHcloud strengthened its German footprint by deploying a new three availability zone cloud region in Berlin, targeting high availability needs in regulated sectors such as finance, energy, defense, and public services (business expansion).
- Founder Octave Klaba was appointed Chairman and Chief Executive Officer following a board decision to end the separation of the two roles and to align governance with the company’s long term strategic vision (executive changes, board meeting).
- OVHcloud issued guidance for fiscal 2026, targeting organic revenue growth of between 5% and 7% (corporate guidance).
Valuation Changes
- Fair Value: reduced significantly from €15.90 to €12.00 per share, implying a materially lower central valuation.
- Discount Rate: increased from 10.99% to 12.30%, modestly raising the required return and reducing present value estimates.
- Revenue Growth: lowered markedly from 12.75% to 8.88% per year, reflecting more cautious top line expectations.
- Net Profit Margin: cut sharply from 11.64% to 6.32%, indicating a more conservative view on long term profitability.
- Future P/E: nudged higher from 23.1x to 25.2x, assuming a slightly richer earnings multiple on longer term projections.
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