Teleperformance: Reassuring Growth Guide With Depressed Valuation (Rating Upgrade)

Mare Evidence Lab
5.77K Followers
(9min)

Summary

  • Supportive growth ahead with margin upside thanks to ZP acquisition and Majorel cost synergies.
  • Record cash performance with a solid FCF generation.
  • Teleperformance has announced a new investment program for AI partnerships, with a target of €100 million in the year.
  • The company trades at a depressed valuation with a low P/E and a high FCF yield. With an ongoing buyback, we confirmed our buy rating.

Exterior view of the teleperformance building, showcasing the company"s modern architecture

joao malaquias

Here at the Lab, we have good coverage of Teleperformance (OTCPK:TLPFF) (OTCPK:TLPFY). Founded in 1978, the company is the market leader in outsourced customer experience services. Its core Services (primarily contact centers) represent approximately 70% of EBITA; however, Teleperformance is increasingly

This article was written by

5.77K Followers
Buy-side hedge professionals conducting fundamental, income oriented, long term analysis across sectors globally in developed markets. Please shoot us a message or leave a comment to discuss ideas.DISCLOSURE: All of our articles are a matter of opinion, informed as they might be, and must be treated as such. We take no responsibility for your investments but wish you best of luck.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of TLPFF, TLPFY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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