Sopra Steria Group: H1 15 results above expectations, FY15 guidance raisedBUY, Fair Value EUR90 (+5%)
This morning Sopra Steria reported H1 15 results above our forecasts and consensus – thanks to solid execution and a well-advanced integration between Sopra and Steria - , but net debt reached 2.1x EBITDA (yet still way above the covenant limit) due to a high WCR change. FY15 guidance is upped, with the company now expecting lfl sales growth of c. 2% with an op. margin of c. 6.5% vs. c. 6% previously. We expect the share price to react positively short-term.