Atos the group is charting its course and slowly recovering
Analysis published on Thursday, April 27, 2023
Rarely has a value been subject to so many rumors in recent months with anticipated takeover bids by all the major players in the sector: Thalès, Airbus, Orange, etc., etc. And yet the file does not take off, a sign that all these elements are not yet very tangible for analysts.
Indeed, given the sensitive nature of certain activities of the group, the French State has already vetoed an acquisition by a foreign company. If there were therefore to be a consolidation around Atos or a proper carving up of the company, it would remain a Franco-French affair, which somewhat limits the potential candidates to raise the speculative mayonnaise.
For its part, the group is charting its course and continuing its reorganization which will culminate in a split into 2 group entities by the end of 2023. Atos already publishes its accounts in a differentiated manner for the 2 future entities and the recovery continues to take place despite all the noise that reigns around the group. Thus, the most promising activities that will be housed in Evidian recorded encouraging growth of 9.5% in sales in the first quarter of 2023. For their part, activities related to info management in particular fell by 2.6%. . A figure that is in line with the group’s strategy, which is to abandon unprofitable contracts to focus on higher-margin items.
From this point of view, we can say that the company is charting its course and that we see a little more clearly than a few months ago. However, the market does not yet take into account these first elements of recovery because we must not elude either the hypothesis in which the group would recover from its setbacks on its own. We still believe it is undervalued on current bases and are aiming for a first target of €16.
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