Elior: stock slumps as Oddo steers clear
(CercleFinance.com) - Oddo maintains its underperform rating on Elior shares, trimming its target price for them from 3 euros to 2.
6 euros.
The broker is cautious, believing that certain macroeconomic factors could weigh on Elior's business in the near term.
In particular analysts highlight supply difficulties, very high inflation in certain raw materials and recruitment difficulties.
They add that industry wage negotiations have proved to be more significant than the group anticipated (+5.6% increase vs. +2.7% budgeted, starting in August 2022.
In this light, Oddo now expects an operating loss of 42 million euros for 2022 (vs. -38 million euros previously).
The stock is in a spin - down 16% an hour into trading - with everyone obviously eating at home today.
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.
6 euros.
The broker is cautious, believing that certain macroeconomic factors could weigh on Elior's business in the near term.
In particular analysts highlight supply difficulties, very high inflation in certain raw materials and recruitment difficulties.
They add that industry wage negotiations have proved to be more significant than the group anticipated (+5.6% increase vs. +2.7% budgeted, starting in August 2022.
In this light, Oddo now expects an operating loss of 42 million euros for 2022 (vs. -38 million euros previously).
The stock is in a spin - down 16% an hour into trading - with everyone obviously eating at home today.
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.