Bank of America analysts have painted a positive outlook for a handful of European technology stocks, predicting growth will accelerate in the second half of this year. Despite a challenging earnings season, with mixed second-quarter results – sending European tech stocks down 10% since mid-July – the bank sees potential for accelerated growth in key areas of the industry. .STOXX 1Y Line The European tech sector has experienced significant volatility this year, with results varying widely from company to company. While some companies, such as SAP, have seen their shares surge by nearly 45%, others, such as Capgemini, have been struggling. However, Bank of America remains bullish, particularly in software, IT services and payments. “We expect (sales) growth to accelerate in the remainder of the year, driven by the gradual recovery of IT services, with growth of 5.5% (in the second half) compared with 5.0% in the first half, having reached a trough of -2.7% Bank of America led by Frederic Boulan In a research note to clients titled “Year-End Outlook: Re-Acceleration,” analysts said (first quarter) organic growth as discretionary spending recovered and ended the (fourth quarter) + 0.7% growth. Continued efforts and a broad focus on cost efficiency and margin expansion Despite these challenges, Bank of America sees reason to remain optimistic and lists several stocks it believes will benefit from the expected economic recovery. . All these stocks are also traded in the U.S. For IT services, it favors Sopra Steria, NetCompany and Alten. In payments, artificial intelligence is emerging as a growth prospect. important factor. While many companies are still in the early stages of monetizing AI technology, Bank of America analysts see it as a potential catalyst for future investments. For example, SAP plans to bring its AI use cases to market by the end of 2024, according to the Wall Street bank. Doubling from more than 100 currently to around 200. Bank analysts see huge potential in the cloud computing sector, especially as a beneficiary of artificial intelligence-driven demand. Bank of America expects cloud industry revenue to grow by 2024. 26%, up from 22% in 2023.
