TELEPERFORMANCE Shares Drop 4.21% at Close, Impacted by Revised Outlook
Teleperformance continues its decline at the end of Friday's session. The group's shares fell to €57.78, affected by the digestion of third-quarter results and the downward revision of its 2025 targets announced earlier in the week.
Significant Drop in Share Price
The share price fell by 4.21% this Friday, November 7, closing at €57.78, down from €60.32 at the previous close. Trading volumes were slim, with only 0.61% of the capital traded, reflecting limited liquidity for this struggling stock. The decline is part of a broader weakening trend: the stock has lost 6.72% over the week and shows a decline of 15.03% over three months. The contrast with the general market trend is striking. The CAC 40 only fell by 0.18% on Friday and has risen by 7.88% over the past year, while Teleperformance has plummeted by 41.53% over the same period. This performance gap illustrates the specific challenges facing the group, which has been unable to regain investor confidence amid the technological transformation of its sector. The stock, once considered a reliable growth value of the CAC 40 until last September, has seen its position fundamentally questioned by the emergence of artificial intelligence and its implications for traditional customer relationship jobs.
Downward Revision of Prospects
The main source of the decline lies in the downwardly revised prospects announced on Tuesday. Teleperformance now targets organic growth of 1.0% to 2.0% for 2025, well below the initial range of 2% to 4%. In terms of profitability, the expected current EBITA margin is between 14.7% and 15% at constant rates, compared to the previously forecasted 15.0% to 15.1%. Net available cash flow is expected to be around 900 million euros, far from the one billion euros previously envisaged. These reductions reflect a more degraded business environment than expected. Third-quarter results presented a mixed picture: revenue fell by 0.5% in reported data to 2507 million euros, although organic growth was positive at 1.5%. Core Services activity grew by 3.9% organically, driven particularly by growth in America, which accelerated to 2.4%. Specialized services, on the other hand, contracted by 12.3% on a like-for-like basis, hindered by the non-renewal of a major visa application management contract. Recent acquisitions contributed positively by 56 million euros, partially offset by unfavorable exchange rate effects.
Technical Analysis Reveals Bearish Signals
Technical analysis reveals an accumulation of bearish signals. The Relative Strength Index (RSI) stands at 39, indicating significant selling pressure. The MACD configuration shows a negative line at -0.81, diverging further from its signal line at -0.39, indicating the persistence of the bearish momentum. The stock is now well below its 50-day moving average, set at €63.94, while the 200-day moving average, at €82.38, underscores the extent of the structural decline. The major support at €60.32 was breached at close. The stochastic oscillator indicates a sell signal. With a monthly volatility of 9.93 and a negative beta coefficient of -0.48, the stock amplifies downward movements when the general market weakens, adding an additional factor of disaffection.
