Berenberg has slightly raised its target price for Elis from €21 to €22, while renewing its buy recommendation on the stock.

In a research note, the analyst points out that the cleaning and hygiene group's stock has climbed nearly 40% since its inclusion on its recommended mid-cap list last November.

After generating organic growth of 21% last year, Elis is expected to post another year of double-digit growth this year, while improving its margins.

Despite these sustained growth prospects and favorable stock market dynamics, Berenberg believes that the share is still 'cheap', particularly on the basis of a 2023 PER of 9x, at a time when the company is tending to deleverage.

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