Sodexo: Barclays no longer a seller
(CercleFinance.com) - This morning analysts at Barclays have upgraded their rating on the Sodexo stock: previously negative ("underweight"), they have returned to a neutral stance ("weight in line"), having also increased their target price for the share from 79 euros to 105 euros, which is more or less the share's current price.
Analysts believe that the consensus is unlikely to fall: "We also think in the short term that H1 results (2018/2019, due on 11 April, ed.) can be a positive catalyst," says a research note. Barclays expects a sound trend in Q2 results, as well as an "optimistic outlook" for Q3.
"By no means do we think that all the problems have been resolved in catering but we are encouraged to see recent management changes in NA and a greater focus on the core food offering," the broker says in its note. In addition, management's guidance is now considered more credible.
However, analysts refrain from adopting a buy rating, with challenges ahead for the group's Health and Education divisions in the US.
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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.
Analysts believe that the consensus is unlikely to fall: "We also think in the short term that H1 results (2018/2019, due on 11 April, ed.) can be a positive catalyst," says a research note. Barclays expects a sound trend in Q2 results, as well as an "optimistic outlook" for Q3.
"By no means do we think that all the problems have been resolved in catering but we are encouraged to see recent management changes in NA and a greater focus on the core food offering," the broker says in its note. In addition, management's guidance is now considered more credible.
However, analysts refrain from adopting a buy rating, with challenges ahead for the group's Health and Education divisions in the US.
Copyright (c) 2019 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.