Elior: attractive entry point according to UBS

(CercleFinance.com) - This morning, UBS has increased its rating on the little-loved Elior share from 'Neutral' to 'Buy', with the 12-month price target adjusted from 14.
4 to 14.8 euros.

“After a number of difficulties emerged at Elior, as across the entire [mass catering] sector, the share lost approximately 50% of its value in one year”, specifies a research note. “We are of the opinion that these aspects are now incorporated into the share price, making for an attractive entry point”, it says.

UBS still looks favourably on the mass catering sector, whilst airport concessions continue to be driven by positive trends. The group's operating margin should recover as of 2019. Finally, the valuation of the Elior share is considered “conservative”, as it represents an undervaluation against comparable shares.

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