Update shared on 22 Oct 2025
Fair value Decreased 4.88%Analysts Lower Sopra Steria Price Target as CEO Steps Down and Forecasts Adjusted
Analysts have lowered their price target for Sopra Steria Group from €217.40 to €206.80. They cite slightly higher discount rates as well as marginally reduced revenue growth and profit margin expectations.
What's in the News
- Sopra Steria’s CEO, Cyril Malargé, announced his decision to step down. A formal process is underway to appoint a new Chief Executive Officer, and an interim transition team is in place. (Board Meeting on October 8, 2025)
- The company commenced a significant share buyback program, authorized to repurchase up to 10% of its issued share capital for €616.43 million. Repurchased shares are allocated for a range of corporate purposes.
- Sopra Steria was selected as one of Posten Bring’s main IT partners following a competitive international tender. The company will support modernization and digitalisation initiatives for the Nordic logistics leader over a four-year agreement, with an option for three additional years.
- In collaboration with IDEMIA Public Security, Sopra Steria completed the launch of eu-LISA’s new shared Biometric Matching System. This project advances security and border management operations throughout the Schengen Area.
- Sopra Steria confirmed its 2025 financial targets, projecting organic revenue growth between -2.5% and +0.5%, and an operating margin on business activity between 9.3% and 9.8%.
Valuation Changes
- Consensus Analyst Price Target has decreased from €217.40 to €206.80, indicating a modest downward revision in fair value estimates.
- The discount rate has risen slightly, moving from 9.77% to 9.90%. This reflects a marginally increased risk premium.
- Revenue growth expectations have been reduced slightly, shifting from 2.27% to 2.24%.
- The net profit margin forecast has edged down from 5.93% to 5.90%.
- The future P/E ratio has declined from 14.39x to 13.82x, suggesting a lower anticipated valuation multiple.
Disclaimer
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