Elior: share jumps after broker upgrade

(CercleFinance.com) - The Elior share is up about 5% at noon on Wednesday, boosted by Bernstein upgrading it from "Underperform" to "Market-Perform".

This rise makes it the biggest winner in the SBF 120 (+1.8%), overtaking Air France-KLM.

Bernstein analysts explain that they have upgraded the share due to its recent underperformance, which "leaves stock looking more fairly valued".
"Elior's shares are now down 70% YTD, lagging its catering peers by ~30-40%," the broker points out.

Bernstein, which maintains its target price of 4.3 euros, points out that the Elior title has lost 36% since June, while its British peer Compass has remained fairly flat.

"While Elior is correctly considered the most cyclical (lowest margin business, high leverage), we think from here further underperformance to the market is less likely," it concludes.



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