UPDATE: ATOS
Cheap to peers. Underperformed Cap Gemini by 0ver 20% in the last year.
Last year they bought Xerox’s IT Outsourcing Business. Atos will triple in size its US footprint.
Earning’s from Bull will stabilise and Xerox aquisition synergies will pay in H2 2015.
Well known growth drivers are big data, cloud and electronic payment systems. We also expect cybersecurity to be a big theme for 2015.
Stay long as numbers tomorrow will start to process of the valuation gap diminishing.
ATOS to Buy Xerox’s IT Outsourcing Business for $1.05b
Atos will triple in size in the US with the acquisition of Xerox ITO
Atos trades at a 30-40% discount to peers. Which is unjustified to us. Trades on 10 times 2015 earnings
According to Mainfirst its a great deal with good price ev/sales @ 0.7x with healthy 8% margins! Deal Q2’15 and will be 10% accretive in first year
They expect 10-15% upgrades
We are still looking for EUR73-EUR75
UNDERVALUED UNLOVED… INE FOR 2014
Thursday • 27 March • 2014
Atos exits U.K. government WCA contract early after settlement (small +ve)
It was a loss making contract so positive news. No timing or further details given
Atos is still undervalued vs peers and while comps are lacking a catalyst the Worldline IPO is coming soon for Atos
Further positive news for Worldline today with announcement of a partnership with Yapital
Worldline continues on its way to becoming the Standard at Point Of Sale and continuing and improving its leadership in e-payment transactional services pre the IPO (Press release)
Stay long, we are looking for EUR73-EUR75 post IPO
COMMENT ON EARNINGS: KEEP ADDING
Poor topline numbers from ATOS this morning however looking further out the progression is there
This weakness is another chance to get long with management confirming the worldline IPO this year and there foothold in payments where M&A is likely also this year…keep adding
Undervalued unloved… One for 2014
Thursday • 19 December 2013 • 15:27
Compelling three-year plan starting 2014
Balance sheet improvements with early redemption of convertible and settlement of the Dutch Pensions
Recently won IT services provision contract for the Olympic Games until 2024
The big catalyst for 2014 is the World Wide IPO
Positive X-Read +ve from the Accenture call “We’re seeing signs of momentum across our businesses ..and a very healthy pipeline”
Cheap to peers Cap and Accenture see attached Grab….
Looking for EUR70-EUR75 at least
