Capgemini: Same old story: do not overinterpret Infosys's results!BUY, Fair Value EUR96 (+28%)
We reiterate our Buy rating following a 5% share price decline during the last two trading days - essentially attributable to Infosys’s Q2 FY16 results. We consider Infosys’s prudence for H2 FY16, which is due to customer-specific items, cannot be extrapolated to Capgemini - as we already forecast for the latter a slowdown in lfl growth in North America for H2 15 due to tougher comps. While we are not concerned by the impact of the departure of Igate’s CEO Ashok Vemuri on Igate’s integration process, we deem the recent share price decline makes Capgemini’s share price more attractive.
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