Capgemini Shares Bounce Back 2.5% and Lead the CAC 40
The digital services group's stock makes a strong recovery midday, while the Paris index moves contrarily in the red. The rebound comes after a series of challenging sessions that brought the price to its multi-year lows. Goldman Sachs also adjusts its target price on the stock.
A Technical Rebound Leads the CAC 40 as the Index Falls 0.8%
Capgemini gains 2.51% to €90.02, leading the CAC 40 as the index drops by 0.78%. The stock recovers after hitting its lowest since the health crisis last week, following an 8.5% drop on June 18 in the wake of Accenture. The rebound does not change the overall trend: the stock is still down 6.68% for the week and 12.69% for the month. The RSI at 33 indicates seller exhaustion over the last few sessions, yet does not bring the price above its 20-day moving average, which is at €98.73 (a gap of -8.82%). The support level of €87.82, breached in the previous session, now serves as an immediate pivot for the stock. The session occurs in a tense market environment, with the VIX soaring 18% to 19.84 as European and Asian indices pull back.
Goldman Sachs Lowers Target to €150 While Reaffirming Buy Rating
On June 23, Goldman Sachs reduces its price target for Capgemini from €165 to €150, while maintaining a buy rating. The new target implies a theoretical upside of about 67% from the current price. According to the consensus of analysts surveyed, the stock is trading at approximately 7.0 times the earnings expected for the current fiscal year and 6.5 times those of the next fiscal year, with an estimated EPS growth of 6.6% year over year. The company had presented its strategic roadmap through 2028 at the end of May, focused on the deployment of agent-based AI, targeting an annual compounded revenue growth rate between 5.5% and 7.5%. The next key date is June 30, with the start of the quiet period before the publication of the semi-annual accounts.
