Teleperformance Shares Climb 5.83% at the Close of Thursday, January 22
Teleperformance shares surged by 5.83% at the close of Thursday, January 22, crossing the 62 euros threshold to settle at 62.08 euros. This rebound follows a week marked by a weekly gain of 4.34%, amidst a challenging sector environment since mid-January. Despite this technical recovery, the annual performance remains negative with a 12-month decline of 29.04%. Investors are reassessing the valuation levels of the customer relationship management outsourcing specialist after several weeks of tension related to sector uncertainties and deteriorating growth targets.
Technical Analysis Overview
From a technical standpoint, Teleperformance is now trading above its short-term moving averages, with a price of 62.08 euros surpassing the 50-day moving average set at 59.85 euros. This breakthrough is seen as a positive signal by technical analysts, indicating a potential improvement in momentum. The immediate resistance threshold is at 64.12 euros, a level corresponding to recent recovery attempts. Conversely, the key support remains established at 57.18 euros, close to the previous week's low. The RSI is positioned at 40, a level still below the neutral zone of 50, indicating that the dynamics are not yet fully bullish. However, the indicator reveals no marked overselling, suggesting a possibility of stabilization if volumes support the movement. The one-month volatility remains high at 9.36%, reflecting the ongoing hesitations of operators in an environment marked by earnings warnings and macroeconomic uncertainties affecting the contact center sector.
Analyst Recommendations and Financial Performance
Regarding analyst recommendations, Morgan Stanley reduced its price target from 128 to 115 euros at the beginning of January, while maintaining an overweight rating. This revision reflects increased caution, although the target remains significantly above the current price, offering a theoretical upside of 85.3%. Meanwhile, Deutsche Bank lowered its target from 105 to 70 euros at the end of November with a hold rating, indicating a limited potential of 12.8%. These successive adjustments reflect market concerns about the growth trajectory of the group. In the third quarter of 2025, the group reported revenue of 2,507 million euros, up 1.5% on a comparable basis, but slightly down by 0.5% on reported data. Since then, management has revised its annual targets downward, now expecting revenue growth between 1.0% and 2.0% on a comparable basis and a current EBITA margin between 14.7% and 15%. The mid-January announcement of losses at Concentrix, a direct competitor, has weighed on the entire outsourced customer service sector.
