Elior: Oddo cuts target price.
(CercleFinance.com) - In a report issued on Tuesday morning, Oddo has cut its target price on the Elior stock from 20.
5 euros to 19 euros, maintaining its "reduce" recommendation, as adopted on 20 November this year, after its previous "neutral" rating.
The broker, which has sanctioned a reduction in the group's 2017 margin targets, said that it fears that 2018 will also be a "challenging" year, mentioning "a risk on free cash flow" in its FY accounts, which will be unveiled on 6 December this year, "given the increase in capex and potential risk on WCR".
The broker also expects the 2020 targets to be challenged and has therefore reduced its 2018/2019 EPS estimate sequence by 5.4%. It also expects the group's Ebitda margins to remain flat next year, although has maintained its estimate of 3.5% organic growth.
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 to 19 euros, maintaining its "reduce" recommendation, as adopted on 20 November this year, after its previous "neutral" rating.
The broker, which has sanctioned a reduction in the group's 2017 margin targets, said that it fears that 2018 will also be a "challenging" year, mentioning "a risk on free cash flow" in its FY accounts, which will be unveiled on 6 December this year, "given the increase in capex and potential risk on WCR".
The broker also expects the 2020 targets to be challenged and has therefore reduced its 2018/2019 EPS estimate sequence by 5.4%. It also expects the group's Ebitda margins to remain flat next year, although has maintained its estimate of 3.5% organic growth.
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.