Elior: Oddo downgrades to 'reduce'.
(CercleFinance.com) - In a report issued on Monday morning, Oddo has downgraded its rating on the Elior stock from "neutral" to "reduce" and has cut its corresponding target price from 25 euros to 20.
5 euros.
The broker is sanctioning Friday's profit warning, with the group lowering its targets for margins in 2017 - and fears that 2018 will also be a "challenging" year.
Oddo also expects that 2020 targets will not be respected, "especially considering the smaller contributions of business initiatives and savings plans", with a new CEO will be appointed in early December.
While the broker believes that visibility remains low and that the share's valuation is generous, Oddo remains confident about the prospects for organic sales growth. However, it expects an Ebitda margin of 8.8% in 2020, compared to 9.5% previously and a range of 9% to 10% expected by the group.
Copyright (c) 2017 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.
5 euros.
The broker is sanctioning Friday's profit warning, with the group lowering its targets for margins in 2017 - and fears that 2018 will also be a "challenging" year.
Oddo also expects that 2020 targets will not be respected, "especially considering the smaller contributions of business initiatives and savings plans", with a new CEO will be appointed in early December.
While the broker believes that visibility remains low and that the share's valuation is generous, Oddo remains confident about the prospects for organic sales growth. However, it expects an Ebitda margin of 8.8% in 2020, compared to 9.5% previously and a range of 9% to 10% expected by the group.
Copyright (c) 2017 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.