Cap Gemini Contract Raises Profile
Shares in Cap Gemini Ernst & Young rose three per cent yesterdayafter its largest-ever contract win prompted brokers to raise estimates for Europe's leading information technology consultancy.
Cap Gemini announced on Thursday a ten-year, pounds 3 billion contract to provide IT services to the Inland Revenue Service.
The group, which has an office in Birmingham, said the contract, snatched from incumbent US giants EDS and Accenture, would boost its profile among the world's big consultancies and add 300 million euros to sales in 2004.
Cap Gemini shares yesterday reached 42 euros (pounds 29.37), leading French blue-chips, beating the European sector and impressing several analysts.
'We continue to view this contract -CGE&Y's largest ever -as a significant positive,' Goldman Sachs analysts wrote in a research note.
Goldman, which repeated an 'outperform' rating on the stock, said the contract would help stabilise the firm's sales and provide another important outsourcing anchor client. …