On Tuesday, Morgan Stanley (NYSE:MS) made a significant adjustment to its stance on Teleperformance (TEP:FP) (OTC: TLPFY), upgrading the stock from Equalweight to Overweight. The firm has set a new price target of €147.00, a decrease from the previous €171.00. The upgrade comes amidst a period where the company's shares have experienced a dramatic 75% fall from their peak value.
The analyst from Morgan Stanley identified several reasons for the upgrade, suggesting a more optimistic outlook for the company. The firm observed that the impact of AI-related news on the stock's performance is diminishing, which could indicate a stabilizing effect on the share price. Additionally, the analyst believes that the company's guidance for 2024 is attainable, which may instill confidence in investors.
Teleperformance is expected to provide further clarity to shareholders by releasing midterm guidance by early 2025. This move is anticipated to address some of the uncertainties surrounding the company's future prospects. Moreover, Morgan Stanley suggests that the potential for additional cash returns to shareholders could be announced before the year's end, which may serve as an incentive for investment.
The firm's recent marketing efforts across Europe have revealed a growing interest in Teleperformance among investors. This positive sentiment is reflected in the analyst's comments and the decision to upgrade the stock's rating. The company's proactive measures and the evolving market dynamics appear to be contributing factors to Morgan Stanley's revised outlook on Teleperformance shares.
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