Elior: Goldman Sachs upgrades to 'buy'
(CercleFinance.com) - In a note yesterday, Goldman Sachs upgraded its neutral rating on the Elior share to buy.
Alongside this upgrade it has raised its corresponding target price from 12 euros to 15 euros, meaning upside potential of around 25%.
The analysts' decision first comes from the "significant underperformance" of the Elior share since the beginning of the year, which has been limited, albeit in a bullish market. As a result, the share's valuation presents an attractive risk/return ratio, while on average Elior's EPS is expected to increase by 15.2% per year between 2020 and 2022.
Goldman Sachs also points out that with the sale of Areas, "the company could return more than 15% of its current market cap to shareholders or invest to build market share in the faster-growing US market over the same period".
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.
Alongside this upgrade it has raised its corresponding target price from 12 euros to 15 euros, meaning upside potential of around 25%.
The analysts' decision first comes from the "significant underperformance" of the Elior share since the beginning of the year, which has been limited, albeit in a bullish market. As a result, the share's valuation presents an attractive risk/return ratio, while on average Elior's EPS is expected to increase by 15.2% per year between 2020 and 2022.
Goldman Sachs also points out that with the sale of Areas, "the company could return more than 15% of its current market cap to shareholders or invest to build market share in the faster-growing US market over the same period".
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.