The factors in favour of a rise in the Sopra Steria share price:
With regard to the strengths of this company, the fact that the Sopra Steria group has become over time one of the largest European companies in its sector of activity since it ranks fourth in this market both in Europe and in France. This beneficial positioning was made possible by the friendly takeover bid of Sopra and Steria, which were previously independent entities. The positioning of Sopra Steria in France is particularly interesting since it is the French leader in this market, the other companies which are represented and which generate more turnover are foreign. But Sopra Steria is also the leader in providing IT services in the United Kingdom, where it generates just under a third of its turnover. The group is also very well represented in Germany.
Among the other strengths of the company is the fact that it offers a diversified and complete portfolio of services which is intelligently broken down into three major growth activities with Sopra banking Software which generates 59% of the group's revenue, Sopra HR Software which generates 31% and property management solutions that generate 10% of revenue.
The division of the activities of this group into 4 large segments with integration services, maintenance, licenses and managed services is another advantage given that this allows it to market its services in all professional fields.
The possibilities offered by Sopra Steria's increasingly strong positioning in the software banking sector, which is currently booming, are also appreciated. The group aims to double its turnover in this segment before 2020, especially through positions reinforced by the takeover of the Cassiopée Company in 2017, which is one of the major French publishers and specializes in specialized financing in more than 40 countries.
Another very promising segment in which the Sopra Storia group is also well positioned is that of cloud computing and big data. There's also an interesting positioning in co-transformation projects such as Ecomouv or Transactifs as well as in the field of cybersecurity.
Finally, the last advantage of this company is its ability to quickly obtain cost synergies through the merger of Sopra and Steria which complete a business plan with training and shareholding plans for employees who started in 2018.