AlphaValue announced on Thursday that it had upgraded its recommendation on Sopra Steria shares to 'buy' from 'low', with a target price raised from €189 to €252.

In a research note, the research firm points out that the acquisitions of CS Group, Tobania and Ordina will change the dimension of the technology group, enabling it to increase its annual sales by more than 15%.

In addition to this simple scope effect, the Paris-based consultancy points out that these operations will enable the company to increase its geographical positioning in the Netherlands and Belgium, while reducing its exposure to France and the UK, which has been very high until now.

"All these elements mean that a discount can no longer be justified on the basis of a comparison with the valuations of its peers", concludes AlphaValue.

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