'The future is calling' - upbeat Citi, JPM and Exane start on Majorel
03/11/2021 07:47
** Three brokerages initiate the coverage of customer
experience operator Majorel Group Luxembourg MAJ.AS , citing
"major strength, major opportunities" ahead
** The company is well positioned to deliver "attractive"
low teens organic growth, thanks to favourable exposures to
digital CX and content moderation, Citi says
** "We also believe that Majorel can narrow the margin gap
with peers as management steps up offshoring penetration from
35% to 40-50%," the broker adds as it starts with "buy"
** JP Morgan initiates with "overweight", as it sees
continued growth and margin expansion, as well as M&A
optionality to broaden its portfolio and expand into new
geographies
** "In our view, a higher valuation is justified considering
we expect growth over the next few years to be at the top-end of
the peer group," the brokerage also notes
** Pointing to "the qualities of a leader and the strength
of a challenger", Exane BNP Paribas starts with "outperform" and
says post-IPO weakness offers a compelling entry point
** Citi, JPM and BNP Paribas worked on Majorel's IPO
** Co-owned by German publisher Bertelsmann BTGGg.F and
Moroccan partner Saham, Majorel went public on Sept. 24, with
shares falling 6% on first trading day urn:newsml:reuters.com:*:nL1N2QQ0JU
** Since its IPO, the stock is down by around 9%
(Reporting by Juliette Portala)
((juliette.portala@tr.com))