On Thursday, Deutsche Bank maintained its buy recommendation on Sodexo, but raised its price target for the stock from 114 to 117 euros, which it considers "still attractive" and likely to benefit from a number of catalysts.

With the foodservices group due to publish its third-quarter results on October 26, the analyst now expects organic growth of 11.1% for an adjusted operating margin of 5.6%.

He points out that the consensus is for organic growth of 11% for an operating margin of around 5.5%.

In its note, the intermediary believes that Sodexo is on track to achieve the targets it has set itself, i.e. organic growth of 6% to 8% for the 2024/2025 period, accompanied by an operating margin of over 6%.

However, due to the planned spin-off of its benefits and rewards business, Deutsche Bank expects the Group to adjust these forecasts to 5% to 7% growth and a margin of between 5.3% and 5.5%.

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