Capgemini weighed down by UBS downgrade

Capgemini shares fell 2.4%, underperforming the CAC 40 index (-1.1%), following a rating downgrade from UBS. The Swiss bank expects persistent concerns regarding artificial intelligence to weigh on the stock.

The bank lowered its recommendation on the French IT services giant from 'buy' to 'neutral', slashing its price target from 150 to 110 EUR. This new target implies a limited upside potential of only 9% compared to the last closing price.

'We see AI-related headwinds intensifying alongside macroeconomic risks. Despite an attractive valuation, the prospect of weaker growth and margins is likely to keep investors on the sidelines,' UBS noted.