-Gilbert Dupont lifts rating on Devoteam to "buy"

Internet Business News
05-12-2011
-Gilbert Dupont lifts rating on Devoteam to "buy"

INTERNET BUSINESS NEWS-(C)1995-2011 M2 COMMUNICATIONS

12 May 2011 - Gilbert Dupont has raised its recommendation on French IT consultancy Devoteam (EPA:DVT) to "buy" from "accumulate" following the release of the company's first-quarter results.
The broker, which raised its share price target on the stock to EUR25.7 from EUR23.9, expects Devoteam to book an organic sales growth of 3% this year.

The IT consulting specialist booked a turnover of EUR133.8m (USD189.6m) in first quarter of 2011, up 15% year-on-year, beating Gilbert Dupont's expectation of EUR129.6m.

The French group saw its operating margin fall to 4.6% from 5.3%, while the broker had forecast a margin of 4.9%.

However, Devoteam's operating margin would have reached 5.2%, if excluding the impact of Polish IT services company Wola Info, fully consolidated in October 2010.

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