When CEO Daniel Julien went on stage in New York for a day in charge of investor relations in June, he knew that the issues were high. Julien’s company, the giant remote chart of French outsourcing, had lost more than 75% of its value compared to its summit in 2022. He was responsible for convincing his audience – investors and Wall Street analysts – that they had misunderstood the company. He and other leaders of Teleperformance spent the following three and a half hours explaining that AI was an integral part of the future of remote raising, citing “AI” more than 75 times. Teleperformance operates call centers and other business process outsourcing. It is one of the largest employers in the world with nearly 500,000 workers worldwide. Julien’s plan was detailed, and the targets were ambitious, but the market verdict was fast and brutal. The shares of the outsourcing company fell 14% after the capital market day of June 18, when the company organized its new AI -centered strategy. In the days that followed, the slide continued, destroying almost a fifth of the value of the company. TEP-FR 1Y Mountain The sale highlighted the doubts of the market on the future of the company in an automated world, despite Julien’s best efforts, even if a major acquisition in the sector suggested a bonus for the skills that remoteperform offers. Investment banks claim that generating AI could represent both a major threat and opportunity to commend – a work -based company of hundreds of thousands of call agents. The managers of the company CAC 40 detailed plans to develop its basic profession with AI, setting long -term financial objectives. The company is aimed at annual growth in annual income of 4% to 6% by 2028, an adjusted beneficiary margin of approximately 15.5% and a net available net (FCF) cumulative (FCF) flow of around 3 billion euros ($ 3.5 billion) between 2026 and 2028. Decreased debt. The bear affair for Wall Street bears, the plan did not reassure them on a business model as a seat. Investors are concerned about AI deflationary pressure. While automated systems manage more customer interactions, the value of traditional services led by humans, in particular those of offshore locations at lower cost, is under pressure. It is already starting to show up. In 2024, the company’s “Core Services” division saw its adjusted profit margin drops by 10% in annual shift, excluding punctual gains and expenditure, over a growth of 1.4%. “In 2025 and beyond, we are skeptical that the company can meet the consensual expectations that deflation of relocation will probably persist, with a deflation linked to automation only to accelerate,” said JPMorgan Sylvia Barker analyst in a note for customers on July 7. Barker sees the action increase from 3% to 91 euros by the end of the following year. Haussiers analysts “buy”, however, say that sale is an important excessive reaction, creating a convincing investment opportunity. For them, the market assessed in the worst case that ignores the company’s ability to rotate and its financial strength. The 47 -year -old company, founded by Julien, has doubled its sales at more than 10 billion euros in 2024. He is also seated on more than a billion euros in cash on his bank account, according to FostSet Data, which she can deploy at will. Berenberg analysts, who have a purchase note on Teleperformance, say that it is “materially undervalued at 4x Ebitda”, a metric with adjusted profit. Bank of America, also with a purchase note, described its valuation as “attractive” and underlined an return policy in the friendly capital of shareholders. Even some of the most prudent analysts recognize the low evaluation. Almost everyone, however, underlined the lack of short -term directives in the start of heavy investments in AI as reason on the part. “In our opinion, this is due to the company that emphasizes its heavy investments in Opex and Capex in the short-term AI, as well as its growth in the Hockey-Bâton trajectory in the 2028 fiscal year,” said Berenberg analyst Carl Raynsford, in a note to customers on June 20. Raynsford – One of the most brilliant analysts who expect the action ticket more than 190 euros the cash flow available by 2028 seems “too cautious”. These analysts believe that the market interprets the company’s AI investments. “We love the strategy,” said Simona Sarli, analyst at Bank of America. “The company aims to develop in higher growth back-office solutions and to reposition its customer experience offering tasks with high added value via targeted investments in AI.” Examination of peers adding to complexity is a confusing inconsistency in the way the market deals with removal in relation to its peers. RBC Capital Markets analysts stressed that investors “enriched” concentrix, a pair listed in Nasdaq, for its AI strategy, while eliminating the equivalent of Teleperformance in “Value Destruction Exercise”. RBC noted that concentrix is up to almost 40% of up to date, while remote rating has increased by only 8%, in accordance with the France CAC 40 index. TEP-FR CNXC YTD LINE they also indicate a survey commissioned by concentrix which has shown that 85% of large companies expect to increase their outsourcing budgets in the next two to three years should be net investments to support their AI program “. Scotiak echoes the feeling of the sector. “Based on our current discussions with Global [customer experience (CX)] Companies, we believe that, contrary to investor concerns, the income landscape for CX companies does not shrink, “Divya Goyal de Scotiabank said in a note to customers.” Instead, it is in transition, with upward outsourcing. This propensity for outsourcing is developing as new technologies are introduced on the market, ultimately benefiting the CX -established players. “The acquisition of WNS of Capgemini, as well as investors weighed on July 7. Space, for 3.3 billion dollars in cash.” Said Bryan Bergin, TD Cowen analyst. “The perception of BPO was materially hampered in the middle of the rise of Genai / Agent technology due to the fears of cannibalization, although in practice “. “History of show.”[Teleperformance’s (TP)] A new growth strategy must prove that AI can stimulate sufficient growth and new sustainable income sources to compensate for the opposite winds of outright automation of certain services, and accelerate deflation on others, “said UBOle Manion analyst in a note for customers.” Although we noted that TP has proven exactly this through the previous technological changes, the current change rate means that this appears much less obtaining this period, “Manion added. Sarli says that the company failed to complete the investors who could be in a roller coaster tour in the coming years.” We do not doubt the well-founded and the potential of the new strategy and said Sarli in a note to customers on June 24. “But we think that management has not managed to reintegrate the 2025 investors.” The remote trainee did not respond to a request for CNBC.
