UBS sets Ipsos stock neutral with EUR49.60 target

Published 30/01/2025, 12:44
UBS sets Ipsos stock neutral with EUR49.60 target

On Thursday, UBS began coverage on Ipsos (EPA:ISOS) SA (IPS:FP) (OTC: IPSOF), assigning the stock a Neutral rating and setting a price target of EUR49.60. The new coverage by UBS analysts highlights Ipsos as a global leader in the field of market research, acknowledging its diversified business model which spans various sectors, geographies, and services. The analysts noted Ipsos’ internal panels and strong balance sheet, which they believe could facilitate mergers and acquisitions, potentially leading to higher growth and improved margins over the medium term.

The UBS coverage also included an analysis of the opportunities and threats presented by generative AI (GenAI) to Ipsos. The analysts posited that generative AI could offer Ipsos potential for long-term volume growth and productivity gains. However, they also pointed out current challenges the company faces, particularly in the United States where Ipsos’ public affairs and pharmaceutical sectors are experiencing a difficult environment.

The analysts elaborated on their stance by stating that while Ipsos’ shares may appear inexpensive, they do not anticipate a re-rating of the stock until the situation in the US shows signs of improvement. This cautious outlook is based on the current market conditions that Ipsos is navigating.

Despite acknowledging the potential for Ipsos to benefit from generative AI in the future, UBS suggests that it is too early for investors to take a position in the stock. The firm’s analysis suggests that Ipsos is well-positioned against its peers when it comes to embracing the potential of GenAI, yet the immediate headwinds in the US market are a cause for a more reserved investment stance at this time.

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