Oddo BHF has reaffirmed its 'underperform' recommendation on Elior and lowered its target price from €2.6 to €1.5, following the publication by the catering and services group of lower-than-expected quarterly sales.

The research firm also points out that while it has revised its forecast for organic sales growth for the year slightly upwards, Elior has reduced its EBIT margin forecast, a warning which it believes 'confirms that the turnaround will take time to materialize'.

Elior has accumulated a number of strategic and operational missteps over the past few years, making a turnaround in the contract catering business remote and relatively uncertain", says the analyst in charge of the file.

Copyright (c) 2023 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.