Sodexo: Oddo BHF remains on 'hold' after trading update
(CercleFinance.com) - Oddo BHF maintains its 'hold' opinion and its target price of 93 euros for Sodexo, in the wake of the catering services group's nine-month trading update accompanied by a confirmation of its annual targets.
Although revenues have proven to be higher than expected, the analyst considers that “the peak has been attained in the third quarter, with the management adopting a more prudent tone as regards the perspectives for Q4 (with a trickier basis for comparison)”.
The consultancy also underlines that “the current valuation points to a considerable premium compared to historical averages, despite lower growth perspectives in 2019-20”.
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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.
Although revenues have proven to be higher than expected, the analyst considers that “the peak has been attained in the third quarter, with the management adopting a more prudent tone as regards the perspectives for Q4 (with a trickier basis for comparison)”.
The consultancy also underlines that “the current valuation points to a considerable premium compared to historical averages, despite lower growth perspectives in 2019-20”.
Copyright (c) 2019 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.