Capgemini falls as another guidance cut shows lacking momentum
** Capgemini SA's CAPP.PA shares fall about 4% after it revised down FY revenue forecast following weaker Q3 sales, hit by sluggishness in certain market sectors
** The French IT consultancy firm sees FY revenue decline of 2%-2.4% at a constant currencies, against 0.5%-1.5% decline previously
** Its Q3 revenue falls 1.6% to 5.38 billion euros ($5.83 billion)
** "Another 2024 guidance cut implies weak Q4 exit," J.P.Morgan says, adding this could imply mid-single-digit percentage cuts to 2025 consensus
** "This is a negative read on IT Services and overall enterprise technology spend," JPM says
** "The group lacks momentum in 2024 and potentially in 2025," Sarah Thirion from Midcap Partners says, pointing to the discretionary nature of spending, its exposure to the automotive sector and Europe,
** "The prospect of a gradual improvement in profitability remains intact beyond 2025," Thirion however adds
** Up until Tuesday's close, Capgemini's shares lost about 6.7% YTD in value
($1 = 0.9230 euros)
Reporting by Leo Marchandon
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