'The future is calling' - upbeat Citi, JPM, Exane and UBS start on Majorel
03/11/2021 10:38
(Adds UBS initiation and comments)
** Four brokerages initiate the coverage of customer
experience (CX) 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%," it adds as it starts with "buy"
** JP Morgan initiates with "overweight", as it sees 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 broker 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
** Co-owned by German publisher Bertelsmann BTGGg.F and
Moroccan partner Saham, Majorel went public on Sept. 24, with
Citi, JPM and BNP Paribas BNPP.PA working on IPO urn:newsml:reuters.com:*:nL1N2QQ0JU
** Although the group is a relatively new player, UBS
initiates with a "buy" rating on an attractive mix of clients
and services for above-market growth, the brokerage says
** Since its IPO, the stock is down by around 9%
(Reporting by Juliette Portala)
((juliette.portala@tr.com))