ATOS: Too much risk to buy the spin-off project now | SELL | EUR13 VS. EUR24
ATOS - SELL | EUR13 VS. EUR24 (-5%)Too much risk to buy the spin-off project now
We reiterate our Sell rating and have cut our DCF-derived target price to EUR13 from EUR24 on reduced EBIT margin assumptions and raised net debt forecasts. We consider the spin-off project for Evidian removes M&A speculation on the Big Data & Security business. This spin-off may be an attractive “exit door” for Atos shareholders, but the time required to complete the deal makes Atos shares unattractive for the next 12 months while Atos will have to face many hurdles before the deal is closed, while the absence of a group CEO until the split becomes effective may be a burden.
Atos is an international information technology services company operating in 52 countries. Co.'s customers are sectors like Public Sector and Utilities, Telecoms and Media, Financial Services, Process Industries and Discrete Manufacturing and Consumer Products and Retail. Co. operates in seven geographical segments: Germany; France; Benelux and The Nordics; U.K. and Ireland; Atos Worldline; Central & Eastern Europe; North America; Iberia; and Other Countries. Co. delivers IT services through the following five segments: Managed Services, Systems Integration, Consulting, Worldline: ePayment Services, and Cloud & Enterprise Software.
Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.