TELEPERFORMANCE : price target lowered by Oddo BHF
March 07, 2024 at 09:14 am
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Oddo BHF reaffirms its 'outperform' rating, with a price target drastically lowered from €238 to €164, the day after the customer relationship outsourcing group published results for 2023 that were slightly below expectations.
The improvement in operating margin in 2024 is weaker than expected, but it has to be said that sales growth (+2/4% pro forma) is suffering from an unfavorable macroeconomic context", notes the analyst.
The valuation is still very limited (EV/ROC 2024 at 6.6 times), but given the low visibility on organic growth, the Group's revaluation should only be part of a medium-term process", he continues.
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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%).