Capgemini rises as Q3 results signal AI-driven recovery

** Shares of Capgemini CAP rise 5.5% after the French IT services company's Q3 revenue signalled recovery driven by solid AI demand

** "Capgemini's recovery is based on a major strategic pivot towards generative AI launched in July 2023," analysts from TPICAP Midcap say

** The Paris-based brokerage points to strong demand for cloud, data and AI services as companies focus on operational efficiency and optimisation, and notes 65% of Capgemini's activities is now linked to digital and cloud services

** The company's Q3 revenue rose by 2.9% in constant currency and it raised revenue growth forecast to between 2% to 2.5% on the same basis

** The stock is among top performers on the pan-European STOXX 600 index SXXP and on track for their best day since late April if the gains hold