On Monday Berenberg reiterated its buy rating on Teleperformance shares, along with its €190 target price, saying that the company's decision to invest heavily in AI was the right way to secure its future.

In its view, the investor day held on 18 June did not hold any major surprises, contrary to what the share's 14% drop following the announcements might suggest.

The analyst attributes this decline to the high level of planned investment in AI and the prospect of slower growth between now and 2028.

Berenberg also adds that it considers the customer experience specialist's free cash flow (FCF) forecast of €3bn for 2026-2028 to be "too cautious," given that it was €1.1bn last year.

Nevertheless, the broker believes that Teleperformance remains significantly undervalued, trading at 4x its operating profit (EBITDA), given the absence of operational problems.


Copyright (c) 2025 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are provided solely as a decision-making aid for investors. Cercle Finance cannot be held liable, directly or indirectly, for the use of such information and analysis by readers. Anyone who is not an expert in the field should consult a professional advisor before investing. This information is provided for informational purposes only and does not constitute an offer to sell or a solicitation to buy.