Elior: share weighed on by broker comments
(CercleFinance.com) - The Elior share is one of the biggest fallers in the SBF 120 on Monday morning in Paris, with the specialist in contract catering was penalised by Berenberg's comments, which decided to reduce its target price for the share.
It believes that the catering sector is highly dependent on students returning to universities, the reversal of the trend towards working from home and the impact of meal deliveries.
"We view the COVID-19-related working from home trend as a larger and more immediate threat to catering volumes than delivery," analysts say.
Berenberg still believes there to be opportunities in the sector - particularly regarding large companies, which it believes will be better placed than smaller sector players: as such, its best pick remains Sodexo.
The German broker, which has a "hold" rating on the Elior share, has also cut its target price for the share from 6 euros to 5.5 euros, which resulted in the share falling by around around 1% on Monday morning.
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