Risk Reward Update

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M

Update

July 31, 2026 03:24 PM GMT

Morgan Stanley & Co. International plc+

TP | Europe

Remi Grenu

Equity Analyst

Risk Reward Update

TP (TEPRF.PA, TEP FP)

What’s Changed

Business Services | France

TP (TEPRF.PA)

From

To

Price Target

€56.00

€61.00

Base Case

€56.00

€61.00

Updated Components

EPS

Investment Thesis

Bull Base Bear Scenarios

Risks to Price Target / Rating

Investment Drivers

Stock Rating

Industry View

Price target

Shr price, close (Jul 30, 2026)

52-Week Range

Equal-weight

Attractive

€61.00

€60.98

€87.98-43.65

Fiscal Year Ending

12/25 12/26e 12/27e 12/28e

EPS (€)**

Prior EPS (€)**

13.00

13.61

13.64

15.08

14.93

16.31

16.15

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

** = Based on consensus methodology

e = Morgan Stanley Research estimates

Risk Reward for TP (TEPRF.PA) has been updated

Reason for change

We update our model following TP's 1H26 results, which were overall in line with

our expectations. We make only limited changes to our forecasts for FY26, assuming

flat organic growth (vs. 0.5% previously) and 14.5% adjusted EBITA margin and

€815m FCF, in line with management guidance. Our FY26 adjusted EPS estimate

remains unchanged as the slightly lower organic growth is offset by more

supportive FX. Our FY27-29 EPS move up by 1% on average on a slightly higher

absolute revenue due to FX.

While positive commentary on LLS momentum suggests it should materialise within

specialised services, a significant recovery of core services is less certain, given the

geopolitical/macro backdrop and drag from content moderation.

We reiterate our Equal-weight rating, but increase our PT to €61 (from €56) driven

by the above-mentioned change to estimates and the roll-forward of our DCF

valuation.

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