Kepler says pressure on IT market to persist, cuts Bouvet to 'hold'

Bouvet ASA

19/02/2025 10:27

** Kepler Cheuvreux cuts Norwegian IT solutions provider
Bouvet  BOUV.OL  to "hold" from "buy", saying it expects IT
consultancy market to remain under pressure in 2025 
    ** The brokerage also cuts Bouvet's target price by 2.5% to
NOK 78
    ** Kepler points to the weak Q4 results, with EPS (earnings
per share) of NOK 0.96, 13% below the NOK 1.07 consensus
estimate
    ** The brokerage adds that continued high inflation in
Norway is set to push salary expenses up by 4.5%, which will
lower company's employee growth 
    ** Bouvet has already announced a 29-employee reduction
quarter on quarter, first since 2012
    ** Shares of Bouvet fall as much as 6% in the morning trade


 (Reporting by Anna Banacka)
 ((Anna.banacka@thomsonreuters.com))