On Wednesday, Deutsche Bank raised its target price on Elis shares from 25 to 25.5 euros, welcoming the materialization of the scenario in favor of a strong improvement in the group's profit margins.

In a reaction note, the analyst - who maintains his buy recommendation on the stock - points out that the industrial laundry group reported slightly lower-than-expected annual sales, at 1.08 billion euros, compared with the consensus forecast of 1.09 billion.

However, its operating margin (Ebitda) came in at 34.2%, against a consensus of 33.7%, thanks to price increases and good cost control.

Elis expects free cash flow (FCF) to exceed 300 million euros for the year, again higher than the consensus figure of 271 million euros.

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