Research Update: Our Favorite French Tech Holding Beats and We Stay Buyers for 2026
We think this is an attractive entry point to buy a discounted compounder that’s still growing, with margins expanding and cash generation improving. looks strong. This report is a must read...
The equity remains significantly undervalued. The main driver of the discount has been the lack of guidance beyond 2026, which we do not view as a major issue. We prefer to take this one year at a time. The stock has been pressured by a short campaign from a fund, which has weighed on shares in recent months. We think that impact is now over reflected in the price.
We are reiterating our high conviction in this name.
Our favorite French tech holding just delivered a great beat on its revised guidance, signaling a major shift into a high-margin growth phase. The numbers show a business that is finally proving its technology works at a global scale. This is best highlighted by an 83% surge in operating cash flow, yet the market is currently distracted by a targeted short campaign.
We believe this short attack is significantly overdone and has lost touch with the company’s actual operational momentum. For the smart money, this disconnect has created a rare opening. The stock is being pressured just as high-margin recurring revenue is doubling and a major European rollout is beginning. We view this as a gift of an entry point for a business that remains materially undervalued and is backed by a massive net cash position.