Groupe Steria: Q1 13 conference call feedback: back-end loaded recovery on margins

News published on April Monday 29, 2013
Share on

We reiterate our Buy rating following last Friday’s conference call. Despite weak Q1 13 sales  negatively impacted by tough comps and utilisation rates under pressure in France, we are convinced Steria will see its op. margin recover significantly in 2013 thanks to the 3P plan launched during summer 2012. The weakness in France is likely to be offset by a strong performance in Scandinavia, and profitability increases in almost all geographies except France. Admittedly, the stock does not have enough immediate positive catalysts as the H1 13 op. margin should be flattish, but the prospect of a 1ppt surge in H2 should be a rerating trigger for the stock at the back-end of the year in our view.

Full report available to subscribers
Please contact 

The Essentials

Everything you need to know about investment banking dedicated to growth
Recent Transactions Highlights
From M&A, to IPOs see what’s been happening at Bryan, Garnier & Co this year
Join our Team
Bryan, Garnier & Co is always looking for talent in all our divisions, at all levels
Explore our opportunities