(News Bulletin 247) – Morgan Stanley, which has an ‘underweight’ recommendation on OVHcloud, lowered its share price target on Thursday from 10.4 to 9.7 euros in the wake of the first half results published yesterday .
According to the research department, these performances reflect not only the context of a slowdown in corporate investment spending, but also the effect of inflationary pressures, in particular the rise in electricity prices.
According to the analyst, the growth opportunity represented by the ‘cloud’ market remains intact, but the achievement of objectives by 2025 – revenue growth of around 25% for an adjusted operating margin of the order of 42% – could prove difficult to achieve.
Morgan Stanley stresses that it is not the only one to find the realization of these forecasts complicated, since the consensus now expects annual growth in activity close to 19% for an operating margin of around 40%.
The professional adds that after a drop of more than 30% last year, the OVH stock is currently down 35% this year.
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