Atos is heading in right direction, Bernstein says with some scepticism

Atos SE

16/05/2025 10:54

** Bernstein says French IT group Atos ATOS.PA is heading in the right direction after its crucial restructuring but there are still some elements leaving the broker sceptical

** "We applaud the way the company has reorganized its assets internally," it says after Wednesday's capital markets day event

** Atos now sees revenue reaching up to 9-10 billion euros ($10-$11 billion) in 2028, with an operating margin of 10%

** Sale of mission critical systems unit is now on hold, with the prospect of winning major defence contracts in Europe, Bernstein notes

** However, Bernstein analysts remain cautious about Atos' revenue trajectory and ability to improve FCF without reliance on working capital reductions

** "While we are not ruling out a successful turnaround at Atos, we need more evidence to be fully convinced that this can be achieved," it says

** It raises its target price by 38% to 27 euros from 19.5 euros

($1 = 0.8929 euros)

 (Reporting by Gianluca Lo Nostro)

 ((gianluca.lonostro@thomsonreuters.com;))