RBC announced on Thursday that it had lowered its target price for Sodexo from 104 to 80 euros after taking into account the demerger of Pluxee.

The Canadian broker - which is maintaining its 'in-line performance' opinion on the stock - believes that the foodservices group has a sharper, more refocused profile following the completion of the demerger.

We believe that the company's significant exposure to facility management will limit the improvement in valuation multiples in the immediate future", he points out in a note.

But we do see potential for the stock in the medium term, given the qualitative improvement underway and the trajectory towards deleveraging, which is bound to be shareholder-friendly", adds RBC.

"For the time being, we consider the stock to be fairly well valued", concludes the broker.

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