Sodexo: Oddo BHF rates 'reduce,' but ups target price
(CercleFinance.com) - Oddo BHF maintains its "reduce" recommendation on the Sodexo share, although has raises its corresponding target price from 80 euros to 90 euros, ahead of the group's publication of H1 results on 11 April, ahead of which it it has reduced its sequence of 2019-20 EPS by an average of 1.
6%.
Despite the acceleration of organic growth since the first quarter, there are still uncertainties about the level of recovery in certain segments (including health and education in North America, which represent 29% of total sales), and particularly on retention, the analyst says.
He adds that the share's current valuation suggests a significant premium relative to its historical average, despite lower growth prospects over 2019-20 (average annual growth of 2.8% p.a. expected in 2019-20, vs. 8.3% over 2008-18).
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.
6%.
Despite the acceleration of organic growth since the first quarter, there are still uncertainties about the level of recovery in certain segments (including health and education in North America, which represent 29% of total sales), and particularly on retention, the analyst says.
He adds that the share's current valuation suggests a significant premium relative to its historical average, despite lower growth prospects over 2019-20 (average annual growth of 2.8% p.a. expected in 2019-20, vs. 8.3% over 2008-18).
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.