Sodexo: Oddo BHF upgrades rating; raises target price.
(CercleFinance.com) - Oddo BHF has upgraded its rating on the Sodexo stock to buy (against Neutral) and has raised its corresponding target price from 108 euros to 117 euros.
"Despite an unflattering momentum, we believe that the share's valuation has once again become attractive in view of the group's FCF yield (2018e FCF yield of 5.9%)," said Oddo BHF.
"The stock's valuation has become attractive once again (2018e EV/EBIT of 12.9x, P/E of 16.2x), with a real discount relative to its peers".
Oddo BHF remains confident in the group's ability to deliver its savings plan of 245 million euros, amounting to c. 220 million euros in 2018e. Analysts believe that the target EBIT growth excluding FX factors of 8%-10% p.a. should therefore be maintained.
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.
"Despite an unflattering momentum, we believe that the share's valuation has once again become attractive in view of the group's FCF yield (2018e FCF yield of 5.9%)," said Oddo BHF.
"The stock's valuation has become attractive once again (2018e EV/EBIT of 12.9x, P/E of 16.2x), with a real discount relative to its peers".
Oddo BHF remains confident in the group's ability to deliver its savings plan of 245 million euros, amounting to c. 220 million euros in 2018e. Analysts believe that the target EBIT growth excluding FX factors of 8%-10% p.a. should therefore be maintained.
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.