OVHcloud is well oriented, analysts are making their opinion known

(AOF) – Almost a month and a half after the OVHcloud IPO, analysts are giving their opinion on the European cloud specialist. On the stock market, the OVHcloud share gained 3.05% to 20.61 euros even as technology stocks are under pressure. It had been listed on the stock market on November 24 at 18.50 euros. Of the 5 analyst notes in our possession, 3 show a favorable recommendation.

Credit Suisse has started monitoring OVHcloud with an Outperformance opinion and a target price of 27 euros. According to the design office, OVHcloud offers unique exposure to a combination of powerful themes: accelerating the transition to the cloud, and the growing emphasis on data sovereignty. The broker also considers the valuation attractive.

JPMorgan for its part has an Overweight recommendation and a target price of 25 euros. “OVHcloud is well positioned to take advantage of the demand for sovereign cloud solutions for data, particularly in regulated sectors and industries that manage sensitive data,” said the analyst. With recent headwinds on revenues largely a thing of the past, he anticipates a re-acceleration in growth from FY2022.

Citi is on the Purchase with a target price of 28 euros. The specialist considers that the group is well positioned to benefit from the long-term growth of the cloud market and in an environment where the emphasis is on data sovereignty, it represents an interesting option compared to hyperscalers (AWS, Microsoft …).

For its part, Morgan Stanley began monitoring OVHcloud with an online Weighting recommendation and a price target of 21.5 euros. “Although OVH offers a mix of high growth and profitability, executing the growth acceleration will be important,” says the design office. The latter also judges that the lack of a current roadmap to positive free cash flow represents an obstacle to be overcome for the title.

Goldman Sachs is also Neutral and targets 24 euros. The analyst notes that the company operates more in low growth market segments. However, it plans to increase its presence in the high-growth public cloud segment. He further expects OVH to benefit from trends around multi-cloud as well as growing concerns about data sovereignty and privacy. That said, the broker also notes that the competitive landscape remains dynamic, with competitors such as Microsoft Azure, AWS and Google Cloud Platform making changes to their operations to comply with European regulations.