Elior: Stifel cuts target price

(CercleFinance.com) - Stifel confirms its sell rating on Elior shares reducing its corresponding target price from 2.
80 euros to 2.20 euros.

"We see significant downside risk to consensus expectations reflecting the combination of the inflationary environment, labor shortage, one-off costs following the new CEO's arrival, and rising interest rates," the analyst said.

And he now expects 21/22 EBITA of 48 million euros (against a consensus of 37 million euros), along with 22/23 EBITA of 53 million euros.

Elior's balance sheet will remain under pressure, Stifel continues, "as we now expect negative FCF in FY22/23 with the financial leverage remaining above the covenant".

The stock is continuing to fall into the abyss, down over 19% at lunchtime today.


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