Goldman Sachs sees scope for growth at Majorel Group, resumes at 'buy'
15/12/2022 12:54
** Goldman Sachs resumes coverage of the call centre company
Majorel Group Luxembourg MAJ.AS with "buy", expecting
outsourcing trends to drive resilient growth near-term
** The broker forecasts about 8% underlying organic revenue
growth over 2023-26 and broadly stable margins, leading to about
9% EPS CAGR, with scope for M&A to drive further upside
** GS resumption comes after the group abandoned its merger
plans with Sitel
** With Majorel's "attractive fundamentals", GS sees scope
for a sustained re-rating, flagging however that peer
Teleperformance's TEPRF.PA trouble in Colombia could still
weigh on sentiment
** "(Teleperformance) shares have seen a de-rating in the
last month... which we think has also impacted Majorel," GS
says, pointing to an about 20% drop in the company's shares in
the last month
** The broker applauds Majorel's strong growth YTD,
"consistent with beat and raise including at Q3 results"
** All 7 analysts that cover Majorel rate the stock "strong
buy/buy"
(Reporting by Elena Smirnova)
((e.smirnova@thomsonreuters.com))