Sodexo: Oddo still a buyer; ups target price
(CercleFinance.com) - Oddo has confirmed its "buy" rating on Sodexo, and has raised its target price for the share from 122 euros to 125 euros, after the service group's trading update, even though it cannot see any significant short-term drivers for the share.
The disappointment regarding organic growth justifies the stock's sanction from the market. Nevertheless, management appeared optimistic at the conference call and we remain confident that the group will reach its annual targets, the analyst says.
The broker believes that at these levels, the stock's valuation remains an important factor in its support, based on a business model that remains solid and which generate a high level of free cash flow generator, with the stock trading at a 2018 P/E of 17x, with an FCF yield of 5%.
Copyright (c) 2018 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.
The disappointment regarding organic growth justifies the stock's sanction from the market. Nevertheless, management appeared optimistic at the conference call and we remain confident that the group will reach its annual targets, the analyst says.
The broker believes that at these levels, the stock's valuation remains an important factor in its support, based on a business model that remains solid and which generate a high level of free cash flow generator, with the stock trading at a 2018 P/E of 17x, with an FCF yield of 5%.
Copyright (c) 2018 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.