Sodexo: Bryan Garnier no longer a buyer
(CercleFinance.com) - Bryan Garnier has downgraded its "buy" recommendation on the Sodexo stock to "neutral" and has cut its corresponding fair value from 120 euros to 95 euros, perceiving no positive catalyst in either the short or medium term for the share, despite the sharp adjustment in the share price.
The broker points out that management unveiled Q2 results that fell short of expectations and has lowered the group's annual targets, due to additional challenges in education and health in the US and the slower-than-expected startup of some contracts.
Although Sodexo has mentioned immediate and medium-term action plans to improve its performance, the broker deems them to be "unconvincing" because of a lack of detail and the estimated time required to restore more "normal results".
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 broker points out that management unveiled Q2 results that fell short of expectations and has lowered the group's annual targets, due to additional challenges in education and health in the US and the slower-than-expected startup of some contracts.
Although Sodexo has mentioned immediate and medium-term action plans to improve its performance, the broker deems them to be "unconvincing" because of a lack of detail and the estimated time required to restore more "normal results".
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.