UNFLAGGED RESEARCH

  Good morning everybody! I will keep this post very short. The objective is only to share an interesting aspect in the investment case for Atos. I am talking about bias among analysts covering the company. If it were not already a problem to have so few analysts interested in Atos, I come now with worse news.  Many of the Analysts covering Atos are strongly related to the Wirecard scandal. Atos previously owned Worldline, an electronic payment EU company, very similar to Wirecard. Atos already sold it, in fact it has been selling stake in Worldline since 2016, but many of the Analysts that were previously covering Atos because of Worldline did not leave. Most of them still cover Atos simultaneously with Worldline, which is now a public company. Here we find the first mistake by the bank's research branches, but it's only starting.  Because Worldline business shared so much in common with the supposed business of  Wirecard, many Analysts specialized in the industry c...

The Case for Atos at 800 € 23, July 2021 Atos stock price (actual): 40.2 EUR  Reinstated target price for a three year period ending July 2024: 800 EUR My thesis: The whole market is misunderstanding Atos. The market has (1) not been able to understand Atos' business operations. Therefore, Analysts have not been capable of understanding the (2) clear and evident business strategy Atos' board has been following. In addition, due to not understanding Atos services, (3) Analysts expect lower future operating margins. This expectations (4) also can be proven to go against the nature of the whole business. The misunderstanding has also (5) led analysts to wrongly categorize Atos' competitors and (6) try to valuate Atos according to industry partner's peers (7) leading to a whole miss valuation of Atos' equity. This Situation has been going on for years, leading the stock price of Atos' shares to trade at 20 year historic lows. These misunderstandings share together (...