Elior: Stifel still a seller after H1 results
(CercleFinance.com) - The analyst believes that the group's H1 results were better than expected in terms of sales, but overall were in line at the EBIT level, while they were disappointing in terms of FCF, with further significant cash burn over the period (over 100 million euros).
The broker notes that its updated medium-term guidance comes with a margin target that has been lowered from 4.6% to 4% for FY23/24, although they believe that this is still too ambitious.
As such, the broker sees no reason to become more positive on the shares following this statement: the analyst confirms his sell recommendation on the stock with a target price of 3.50 euros.
Everyone seems to be having lunch at home today as it happens, with the Elior share down 7%, making it the worst loser amongst SBF 120 stocks.
Copyright (c) 2022 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.
The broker notes that its updated medium-term guidance comes with a margin target that has been lowered from 4.6% to 4% for FY23/24, although they believe that this is still too ambitious.
As such, the broker sees no reason to become more positive on the shares following this statement: the analyst confirms his sell recommendation on the stock with a target price of 3.50 euros.
Everyone seems to be having lunch at home today as it happens, with the Elior share down 7%, making it the worst loser amongst SBF 120 stocks.
Copyright (c) 2022 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.