TELEPERFORMANCE : UBS drastically reduces its target
March 12, 2024 at 09:50 am
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While maintaining its 'neutral' position on Teleperformance, UBS has drastically reduced its price target from 137 to 95 euros, leaving 12% upside potential for the French customer relationship outsourcing group's shares.
Despite a rock-bottom valuation, faster deflation, integration risk and poor visibility on customer decision-making are limiting the potential for revaluation", judges the broker, for whom the group "still has a long and uncertain road ahead of it to reconvince".
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Teleperformance SE is no. 1 worldwide in outsourcing and corporate consulting services for customer relation management. Net sales break down by activity as follows:
- customer experience management services (83.7%): customer information, technical assistance, customer acquisition, back-office services. The group also offers integrated services for business process management and digital transformation and high added value consulting services. Net sales are distributed by geographic region between Europe/Middle East/Africa (36.3%), North America and Asia/Pacific (36.3%), Latin America (22.5%) and other (4.9%);
- specialized services (16.3%): online interpreting, visa application management and debt collection.
At the end of 2023, the group had over 490,000 employees in 99 countries and offers its services in over 300 languages across over 170 markets.
Net sales by customer sector break down into healthcare (56%), government services (13%), insurance (10%), financial services (7%) and other (14%).