Elior: Oddo upgrades to buy
(CercleFinance.com) - In a report released on Monday, Oddo has upgraded its rating on the Elior stock from "neutral" to "buy," having increased its target price for the share from 17.
5 euros to 21 euros.
The broker gave a "reassuring message" at its forum on 11 and 12 January, with a CFO who reiterated that the group's profitable growth strategy would not be changed, with certain confidence regarding the group's outlook, which has led Oddo to think that the phase of downwards in the consensus is coming to an end.
The broker now expects the group's Ebitda margin to increase by 10 basis points to 8.4%, considering the current economic upturn and the operating leverage which the group enjoys. Analysts expect that the impact of Renovations on motorways in France (-5 million euros) and the fall in the CICE from 7% to 6% will be offset by favourable comparison basis effects. They have therefore raised their EPS forecasts for 2018 and 2019 by 2% and 5.4% respectively.
Copyright (c) 2018 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 21 euros.
The broker gave a "reassuring message" at its forum on 11 and 12 January, with a CFO who reiterated that the group's profitable growth strategy would not be changed, with certain confidence regarding the group's outlook, which has led Oddo to think that the phase of downwards in the consensus is coming to an end.
The broker now expects the group's Ebitda margin to increase by 10 basis points to 8.4%, considering the current economic upturn and the operating leverage which the group enjoys. Analysts expect that the impact of Renovations on motorways in France (-5 million euros) and the fall in the CICE from 7% to 6% will be offset by favourable comparison basis effects. They have therefore raised their EPS forecasts for 2018 and 2019 by 2% and 5.4% respectively.
Copyright (c) 2018 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.