Korian: Oddo downgrades stock

(CercleFinance.com) - Oddo BHF has downgraded Korian shares from "Outperform" to "Neutral", slashing its target price for them from 35 euros to 20 euros (current price about 16 euros, down over -2%), against the backdrop of a complaint filed against the group by residents' families.


The analyst says that he believes that that it will be difficult to prove malice - the group has insurance to cover this type of procedure, and it seems difficult to estimate a financial impact and not very appropriate from an ethical point of view.

Oddo nevertheless stresses that this announcement now directly challenges Korian and keeps the sector under pressure and warns that while the financial impact might be different, the risk of business ethics could go a step further.


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