'Impressive position' in growing market - Berenberg starts Majorel at 'buy'

Majorel Luxembourg SA

01/03/2023 13:43

** Berenberg initiates coverage of call centre company
Majorel Group Luxembourg  MAJ.AS  with "buy," noting the group's
"impressive position" in the market for customer experience
services 
    ** The brokerage highlights Majorel's above-industry-average
earnings growth, ongoing delivery on targets and customer
relationships, adding it believes these qualities could help the
group close an "unjustified" about 40% valuation discount to
peers
    ** Berenberg says Majorel's investment case seems overlooked
by a lot of potential investors, but adds that in its view the
group's focus on investor relations and changes to its reporting
format will improve visibility and trust in the equity
    ** The brokerage also emphasizes the importance of Majorel's
global reach with acquisition of the Arvato China customer
relationship management business opening access to one of the
fastest-growing markets which is expected to contribute 6% to
its sales in 2023    
        ** Moreover, it adds that Majorel's net-cash position
gives the group an option for active M&A 
    ** According to Refinitiv data all eight analysts that cover
Majorelrate rate the stock "strong buy" or "buy"

 (Reporting by Vittorio Maresca di Serracapriola)
 ((vittorio.marescadiserracapriola@thomsonreuters.com))