On Tuesday, Teleperformance shares topped the CAC 40 index following an upgrade by Morgan Stanley, which put the threat posed by the emergence of artificial intelligence (AI) into perspective.

The analysts at the American investment bank have upgraded their rating on the stock to "overweight", from "in-line weighting", albeit with a price target reduced from 171 to 147 euros.

While acknowledging that the acceleration in the automation of customer experience outsourcing activities represents a "risk" for the Group, MS believes that the scenario of the company being totally excluded from the market is highly unlikely to materialize.

On the contrary, the New York-based firm's teams say they see several catalysts likely to support the share price in the short term, starting with the diminishing impact that AI-related news can have on the stock.

Morgan Stanley adds that Teleperformance's 2024 annual targets seem achievable, and that the company could soon unveil new medium-term prospects.

Finally, the analysts mention the promise of further redistributions to shareholders, while emphasizing that European investors seem to be showing increasing interest in Teleperformance.

Following these comments, the share gained 3.8% on Tuesday morning, topping a CAC 40 down 0.5%. The share is now down only 19% since the start of the year.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.