Sodexo: Barclays raises target price
(CercleFinance.com) - Barclays maintains its "weight in line" recommendation on the Sodexo stock, although has raised its target price from 105 euros to 110 euros, saying "(we also) continue to feel increasingly positive" on the service group's share.
The broker points to the acceleration in organic growth over the last quarter, suggesting the turnaround strategy may be starting to deliver, and believes management has a better handle on costs than in the past.
Nevertheless the broker says, "However, we see the 'key positive short-term catalyst' as behind us now. Risks to organic growth remain (especially into Q4), and we see a low probability that the group positively surprises on margins."
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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.
The broker points to the acceleration in organic growth over the last quarter, suggesting the turnaround strategy may be starting to deliver, and believes management has a better handle on costs than in the past.
Nevertheless the broker says, "However, we see the 'key positive short-term catalyst' as behind us now. Risks to organic growth remain (especially into Q4), and we see a low probability that the group positively surprises on margins."
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.