On Thursday, Deutsche Bank raised its target price for Elis from €25.5 to €30, highlighting a "quality" stock that nevertheless carries a "deep discount".

The analyst, who maintains his buy recommendation on the stock, points out that he expected the fall in energy prices to benefit the industrial laundry specialist in 2023.

While it notes that operating margin did improve last year, the intermediary notes that only 17% of this increase is attributable to lower energy prices, with the remainder coming from other levers.

In its study, Deutsche sees clear signs of an excellent operating performance, which it believes will continue to support earnings in 2024, 2025 and 2026.

As for electricity costs, these should continue to fall, it adds, and by more than expected.

Its new price target shows potential upside of 45%.

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