{
  "id": 19606719,
  "title": "Morgan Stanley cuts Teleperformance stock rating on automation risks",
  "url": "https://urgent.news/2026/11/12/morgan-stanley-cuts-teleperformance-stock-rating-on-automation-risks",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-12T05:34:54.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/analyst-ratings/morgan-stanley-cuts-teleperformance-stock-rating-on-automation-risks-93CH-5020405"
  },
  "original_language": "en",
  "account": "Morgan Stanley has lowered its rating on Teleperformance stock, citing automation risks and a slowdown in the call-center industry. The firm reduced its price target from EUR61.00 to EUR55.00 and moved Teleperformance from an Equalweight to an Underweight rating. The downgrade stems from a 4.1% year-over-year decline in global call-center employment and T&S volumes, with 25% of the guidance reduction attributed to offshoring, 50% to automation, and the remaining 25% to LLS. Morgan Stanley anticipates that automation could continue to exert pressure on T&S revenue beyond fiscal 2027 as industry trends dampen confidence in a sustained recovery. The investment bank also noted limited buyback capacity, with substantial repurchases unlikely until fiscal 2029. Teleperformance aims to de-leverage its balance sheet to 1.2x net debt to EBITDA by 2028, up from 2.2x at the start of 2026. The company offers a 5.4% dividend yield and has paid dividends for 35 consecutive years. Analysts are already forecasting a consensus below the company's mid-term guidance, and Morgan Stanley suggests management may adopt a more conservative growth strategy at its strategic update in the first half of 2027. The stock has experienced a 1.2% decline in Q3 2026 revenue, aligning with the previous quarter's decrease.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}