Elior: UBS no longer a buyer

(CercleFinance.com) - This morning UBS abandoned its buy rating on the share of catering group Elior, adopting a neutral stance.


Maintaining its 12-month target price at 13.7 euros, this is virtually identical to the share's current price.

Admittedly, analysts believe that Elior's growth profile and the "recovery" of margins are still some of the fundamental arguments. However, the share has risen by about 14% since the publication of its annual accounts and now seems to price in this prospect, UBS believes.
In addition, UBS valued the concession catering business - which could be split from the rest of the group - at around 1.5 billion euros.

However, according to the latest information from news agencies, as of 19 December, the latest estimate circulating is 1.3 billion euros: beware of any disappointment...



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