Ipsos (AO) | Buy | H1 earnings: first read

研报英文原文证据摘录

Ipsos (AO) | Buy | H1 earnings: first read

Ipsos Buy | Target Price: EUR49.00

Company description Management

Following the acquisitions of Synovate and GfK Custom Research, Ipsos is the Didier Truchot, Chairman

third-largest market research company globally behind Nielsen and Kantar Jean-Laurent Poitou, CEO

(WPP). Close to 100% of its revenues come from custom research. Its revenues Dan Levy, CFO

are spread across four divisions, Consumer, Public Affairs, CRM and Healthcare. Key shareholders

Just under 30% of its revenues come from Emerging Markets and also the US, Free float 85.00%

with EMEA being the largest region. The company has a new CEO, Jean-Laurent DT& Partners 9.90%

Poitou, a 30-year Accenture veteran. JPMorgan 6.60% FIL 5.60%

Investment case Valuation methodology

Gradual improvement in US activity (29% of group revenues) We value Ipsos on historical multiples (50/50 trough/mid-cycle

after delays in replacing maangement in 2024/5. multiples) split on EV/sales, EV/EBITA, and adjusted P/E, applied

New CEO has better profile to repond to challenges and to 2026 forecasts.

opportunities posed by GenAI, notably in the development of We also compare Ipsos' multiples with a wider array of peers,

synthetic data, which can imporve operating leverage and including Havas in the ad agency sector, which has a similar

scaleability. size, growth and client profile, as well as a DCF valuation given

Virtually no debt, limited appetite for large-scale acquisitions, consistently strong cash coversion, low capex and limited M&A.

ultra-low share price and new management (CEO, CFO, Risks to our rating

chairman) could pave the way for long-overdue share buybacks. Generative AI could have a deflationary drag on organic growth

Catalysts over time.