Capgemini: H1 13 results conference call feedback
BUY, Fair Value EUR50 vs. EUR49 (+20%)
We reiterate our Buy rating and raise our DCF-derived fair value to EUR50 from EUR49 following Capgemini’s raised 2012-13 organic free cash flow guidance to EUR800m from EUR750-800m, while we increase our adj. EPS ests. by 2% for 2013 and 1% for 2014-15 on revised op. margin assumptions (8.5% vs. 8.3% for 2013). Growth is expected to accelerate in H2 13 and we are confident with our FY13 lfl revenue growth est. (+0.7%). On top of that, balance sheet optimisation, which will lead to a reduction in the gross cash position, will continue to be a positive catalyst for the stock in our view.
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