Sodexo: Oddo still on hold - maintains target price
(CercleFinance.com) - Sodexo has announced that its performance in Q4 2020 is in line with the assumptions presented in July, with organic fall of 27% in Q4 (-28% over the entire second half of 2020).
Oddo points out that this performance is in line with the consensus, which at this stage expects an organic fall of -12.6% for FY 2020 (Oddo BHF expects -12.4%), which suggests -27% in Q4 according to its estimates.
The group specifies that the impact of its loss in business on its operating result is also in line with its assumptions, i.e. a drop through of 20/23% in H2, which seems to be in line with consensus expectations (FY20 EBIT of 534 million euros, Oddo BHF expecting 508 million euros, with a drop through of 21.5%e).
Oddo confirms its neutral rating on the share, with an unchanged target price of 65 euros, pretty much corresponding to the share's current price, which is down about 1.5% on Friday morning.
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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.
Oddo points out that this performance is in line with the consensus, which at this stage expects an organic fall of -12.6% for FY 2020 (Oddo BHF expects -12.4%), which suggests -27% in Q4 according to its estimates.
The group specifies that the impact of its loss in business on its operating result is also in line with its assumptions, i.e. a drop through of 20/23% in H2, which seems to be in line with consensus expectations (FY20 EBIT of 534 million euros, Oddo BHF expecting 508 million euros, with a drop through of 21.5%e).
Oddo confirms its neutral rating on the share, with an unchanged target price of 65 euros, pretty much corresponding to the share's current price, which is down about 1.5% on Friday morning.
Copyright (c) 2020 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.