Capgemini SE, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Charles Brennan from Jefferies maintained a Hold rating on the stock and has a €130.00 price target.
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Charles Brennan has given his Hold rating due to a combination of factors influencing Capgemini SE’s current market position. The company’s recent performance shows a positive trend in revenue growth, with a 2.9% increase in constant currency growth, which is a significant improvement from the previous quarter. However, there are concerns about pricing pressures that could negatively affect profit margins, creating a cautious outlook for investors.
Despite the encouraging revenue figures, the lack of detailed organic growth data leaves some uncertainty. The company’s headcount has increased, indicating a potential return to growth, but the book-to-bill ratio remains slightly below the five-year average. These mixed signals, along with the growing but still modest contribution from AI bookings, suggest a balanced perspective, justifying the Hold rating as investors await more consistent indicators of sustained growth.