Capgemini: FY12 results above expectations, strong free cash flow, upbeat FY13 guidance
BUY, Fair Value EUR47 vs. EUR45 (+28%)
We reiterate our Buy rating and increase our DCF-derived fair value to EUR47 from EUR45 with our adj. EPS ests. upped by 6% for 2013 and 2% for 2014 and higher assumptions on the net cash position. Yesterday evening Capgemini reported FY12 results above expectations, while FY13 guidance is upbeat. More impressive was the cash position thanks to a significant reduction in DSOs. Finally, with the new CFO Aiman Ezzat, the group looks to be well engaged to maintain focus on free cash flow. As such we deem the shares are poised to benefit from an additional re-rating.
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