Oddo BHF maintains its 'outperform' rating on Sopra Steria shares, with a price target raised from €290 to €291.

The analyst points out that last Friday, Sopra Steria published Q1 sales in line with expectations, implying org. growth marginally below expectations (org. growth. Q1 growth of +0.3% vs. 0.9%e), and a marked slowdown compared with Q4 (+6.2% org.), as expected, penalized in particular by a weakening in demand.

"Sopra Steria's management was cautious for Q2, citing a limited recovery in growth, excluding the impact of working days", adds the broker.

Sopra Steria also reiterated its 2024 guidance: i/ organic growth of 2% to 4% (css: 3.2% org prepublication); ii/ MOA of +9.5% to 10.0% (css: 9.7%, prepublication); and iii/ FCF> 350 ME (Css FactSet: 366 ME prepublication).

The share's post-publication underperformance, after the previous days' decline due to disappointing peer publications, seems clearly unjustified', judges Oddo BHF.

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