Sodexo: Oddo BHF maintains 'reduce' rating
(CercleFinance.com) - Oddo BHF reiterates its "reduce" recommendation on the Sodexo stock, along with its target price of 77 euros, the day after the services group unveiled its 9m 2017-18 sales figures.
The broker believes that Sodexo's organic growth is unlikely to accelerate before mid-2019, and that it will strongly depend on the stimulus measures announced at its Investor Day, which is scheduled for 6 September.
Without a sharp acceleration in growth, the group's operating leverage should remain weak in the short/medium term and limit the improvement in its operating margin, warns the analyst, who also believes that the Sodexo is currently trading at a generous valuation.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker believes that Sodexo's organic growth is unlikely to accelerate before mid-2019, and that it will strongly depend on the stimulus measures announced at its Investor Day, which is scheduled for 6 September.
Without a sharp acceleration in growth, the group's operating leverage should remain weak in the short/medium term and limit the improvement in its operating margin, warns the analyst, who also believes that the Sodexo is currently trading at a generous valuation.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.