Eliior: Oddo maintains rating and target price
(CercleFinance.com) - Oddo believes that Elior's fundamentals remain healthy and that it has a solid growth outlook through to 2021.
As such, the broker maintains its Buy rating on the stock, along with its target price of 17 euros.
The broker says that Elior is expected to maintain its FY outlook, which it revised in May, with the group expecting: i/ organic growth of close to 3.0% (Oddo BHF estimates 2.7%), ii/ an EBITDA margin of 7.5-7.8% LFL (Oddo BHF estimates 7.6%) and iii/ a fall in EPS (Oddo BHF estimates -16%).
Oddo believes that within the next 3 to 4 years Elior could return to an EBITDA margin of 8.4%, which is in line with its average level over 2011-17, up 80 bp relative to 2018e (Oddo BHF estimates 8.1% in 2021, vs. 7.6% in 2018e).
In terms of EBITA, which the broker believes is a more appropriate aggregate for the sector, it expects 5.0% in 2021e (+60bp vs. 2018e), which compares with a 2011-17 average of 5.6%.
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.
As such, the broker maintains its Buy rating on the stock, along with its target price of 17 euros.
The broker says that Elior is expected to maintain its FY outlook, which it revised in May, with the group expecting: i/ organic growth of close to 3.0% (Oddo BHF estimates 2.7%), ii/ an EBITDA margin of 7.5-7.8% LFL (Oddo BHF estimates 7.6%) and iii/ a fall in EPS (Oddo BHF estimates -16%).
Oddo believes that within the next 3 to 4 years Elior could return to an EBITDA margin of 8.4%, which is in line with its average level over 2011-17, up 80 bp relative to 2018e (Oddo BHF estimates 8.1% in 2021, vs. 7.6% in 2018e).
In terms of EBITA, which the broker believes is a more appropriate aggregate for the sector, it expects 5.0% in 2021e (+60bp vs. 2018e), which compares with a 2011-17 average of 5.6%.
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.