We reiterate our Buy rating and increase our DCF-derived Fair Value to EUR96 from EUR91 following yesterday’s conference call. This factors in the increase in our adj. EPS ests. by 1-2% on fx (+EUR1) and our medium-term lfl sales growth assumption to 5% from 4% (+EUR5) as management reiterated its +5-7% target for 2018 or 2019. As synergies with Igate are delivered ahead of schedule, we expect Capgemini to be able to reach the top-end of the FY16 margin guidance range (11.1-11.3%) at least.
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