Teleperformance (1K) | Buy | Why is the stock up >50% since March?

Research evidence excerpt

Teleperformance (1K) | Buy | Why is the stock up >50% since March?

#EstimatesRevision

Release date: 20 May 2026

Company research

Buy ESG profile Teleperformance

France | Support services Beta Profile: MCap: EUR4.5bn

Target Price: EUR85.00 Change in TP: none Bloomberg: TEP FP Reuters: TEPRF.PA

Current Price: EUR75.94 Change in Sales: none 26E/none 27E Free float 81.3%

Avg. daily volume (EURm) 47.2 Up/downside: 11.9% Change in Adj EBIT: none 26E/none 27E

YTD abs performance 22.8%

Market data: 19 May 2026 Change in Adj. EPS: -1.4% 26E/-1.3% 27E

52-week high/low (EUR) 95.68/45.77

Why is the stock up >50% since March? Price performance

Why this report?

TP shares have rebounded by more than 50% since their March 2026 lows, 110

after reaching historically depressed valuation levels. In this report, we 100

analyse the key drivers behind this sharp rerating and reassess the 90

investment case. In our view, the main catalysts have been: 1/ the massive 70

and highly contrarian stake increase by Saham, controlled by Chairman 60

Moulay Hafid Elalamy, 2/ a progressively less extreme perception of AI- 50

related disruption risks across the CX industry, and 3/ growing expectations 40

May 25 Nov 25 May 26

surrounding the group’s strategic portfolio review, which could potentially

lead to disposals of non-core activities such as TLS or LLS at significantly Price Stoxx Europe 600 (rebased)

higher valuation multiples than the current implied group valuation. Despite

the strong rebound, TP still trades on deeply depressed valuation multiples

(<6x P/E) despite strong cash generation and an investment grade balance

sheet. We reiterate our Buy rating and unchanged EUR85 target price. FY to 31/12 (EUR) 12/25 12/26E 12/27E

Sales (m) 10,209.0 10,070.6 10,247.1