TELEPERFORMANCE : Deutsche Bank lowers its price target
April 08, 2024 at 04:44 am EDT
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Deutsche Bank announced on Monday that it had lowered its price target for Telepeformance shares from 140 to 110 euros, as it felt that many questions remained unanswered regarding the company's future prospects.
The research firm - which is maintaining its 'hold' recommendation on the share - stresses that significant clouds still surround the French group's short-, medium- and long-term prospects.
In the immediate term, the analyst says he sees no sign of an imminent pick-up in activity in call centers, a business in which American operators have cut almost 20% of their jobs since the end of 2020.
The number of employees in the sector is now below its 1996 level, he argues, with the rate of job destruction still reaching 9% in January this year, he continues.
More generally, Deutsche notes that the rhetoric from both customer experience outsourcing specialists and business process management (BPO) players has been tinged with caution of late.
With customer capital spending still under pressure, growth looks set to be weak in the first half of fiscal 2024, the analyst concludes.
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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%).