Berenberg initiates 'undervalued' Ipsos with 'buy'

Ipsos SA

16/05/2024 10:51

** Berenberg starts coverage of Ipsos  ISOS.PA  with "buy",
saying the French research company is undervalued and ideally
positioned to strengthen its leadership in the sector
    ** "The governance issues of the past are now resolved and
the recently appointed management is strong enough to rebuild
the market's trust," the broker says
    ** Berenberg expects Ipsos to generate 5% organic revenue
CAGR over the next three years, above the around 4% expected for
the sector, and to spend 450-650 mln euros on M&A by end-2025
    ** "We expect Ipsos to be a consolidator of a fragmented
sector, which will allow it to unlock revenue and cost
synergies," the broker says
    ** It sets a PT of 89 euros vs Ipsos' last closing price of
64.55 euros per share
    ** All eight analysts covering Ipsos rate the stock "strong
buy" or "buy"​

 (Reporting by Mathias de Rozario)
 ((mathias.derozario@thomsonreuters.com))