Elior: Oddo BHF still steering clear
(CercleFinance.com) - Oddo BHF maintains its Underperform rating on Elior shares with a target price of E2.
8 (cp: E3.1, -19%).
From a purely operational viewpoint, analysts still believe that any improvements at Elior will be slower than at competitors - even with the integration of DMS - with a relatively high integration risk in the near term, the analyst says.
Oddo BHF says that Elior has made a number of strategic and operational faux pas over the past few years, making its recovery in the foodservice sector remote and relatively uncertain.
And it believes that it will probably take 2-3 years to turn the group around, in a context of currently strained balance sheets.
At the same time, the share's valuation remains less attractive than its peers, trading at a 2024e EV/EBIT multiple of 13.4x pro-forma (vs. Sodexo's 12x and ISS's 9x), which is close to its historical multiple, the analyst concludes.
Copyright (c) 2023 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.
8 (cp: E3.1, -19%).
From a purely operational viewpoint, analysts still believe that any improvements at Elior will be slower than at competitors - even with the integration of DMS - with a relatively high integration risk in the near term, the analyst says.
Oddo BHF says that Elior has made a number of strategic and operational faux pas over the past few years, making its recovery in the foodservice sector remote and relatively uncertain.
And it believes that it will probably take 2-3 years to turn the group around, in a context of currently strained balance sheets.
At the same time, the share's valuation remains less attractive than its peers, trading at a 2024e EV/EBIT multiple of 13.4x pro-forma (vs. Sodexo's 12x and ISS's 9x), which is close to its historical multiple, the analyst concludes.
Copyright (c) 2023 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.