CAPMF - Capgemini: Upside Confirmed In Q1'25, I'm Retaining My Positive Outlook

2025-05-18 06:48:54 ET

Summary

• Capgemini remains undervalued with strong fundamentals, solid FCF, and resilient performance despite macro headwinds and tariff concerns.
• I slightly lower my price target to €193/share due to moderated margin and growth assumptions, but still see 14-16% annualized return potential.
• The company's leadership in digital transformation, defense sector exposure, and robust client base support a compelling long-term investment case.

Dear readers/followers,

Capgemini ( OTCPK:CGEMY ) ( OTCPK:CAPMF ) recently released its Q1'25 results with a guidance update for the remainder of the year. I pay attention because I have a non-trivial position in this French/multinational IT company, and I believe the entire company at this particular time to be severely undervalued....

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