Sodexo: Credit Suisse says group lacks visibility.
(CercleFinance.com) - Credit Suisse has reviewed the Sodexo stock, after the group launched another "growth warning" (for the current fiscal year) last week.
While still neutral on the stock, analysts have reduced their target price for the stock from 116 euros to 110 euros.
The research note highlights the group's "disappointing" publication for the first nine months of its fiscal year. Management has reduced its organic growth forecasts for 2016/2017. Moreover, Credit Suisse adds that general management has suggested that growth in 2017/2018, including acquisitions, "is likely to be at the lower end of the medium-term range" (of 4% to 7%).
As a result, Credit Suisse expects Sodexo to report like-for-like sales growth of 1.8% in 2016/2017, followed by 2.7% in 2017/2018, against previous estimates of 2.1% and 3.5% respectively. This automatically has a negative impact on earnings forecasts, which are also affected by exchange rates.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
While still neutral on the stock, analysts have reduced their target price for the stock from 116 euros to 110 euros.
The research note highlights the group's "disappointing" publication for the first nine months of its fiscal year. Management has reduced its organic growth forecasts for 2016/2017. Moreover, Credit Suisse adds that general management has suggested that growth in 2017/2018, including acquisitions, "is likely to be at the lower end of the medium-term range" (of 4% to 7%).
As a result, Credit Suisse expects Sodexo to report like-for-like sales growth of 1.8% in 2016/2017, followed by 2.7% in 2017/2018, against previous estimates of 2.1% and 3.5% respectively. This automatically has a negative impact on earnings forecasts, which are also affected by exchange rates.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.