Elis: Berenberg considers stock 'too cheap'

(CercleFinance.com) - On Tuesday, Berenberg renewed its buy recommendation and E26 target price on Elis shares, which it considers to be far too cheap.


In a research note, the analyst recalls that the industrial laundry operator's share price has fallen by 17% since 5 September, when the first reports of a potential takeover by the American company Vestis appeared.

While we are not surprised by the adverse reaction that has affected the stock, we believe that the scale of this decline is exaggerated, it says.

Reassured by the clear determination of Elis' management team to maintain a disciplined financial approach, Berenberg believes that the stock remains undervalued and that it will rebound once the situation becomes clearer, whether or not an acquisition is finalised,


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