Elior: share price rises after JPMorgan upgrade

(CercleFinance.com) - On Friday, Elior shares were the biggest risers on the SBF 120 index on the Paris Bourse after JPMorgan upgraded its recommendation on the stock, which it said it considered an interesting case to play with with a view to a turnaround.


At around 2:30 pm, the catering group's shares jumped by more than 6%, compared with a virtually flat SBF 120 at the same time.

JPMorgan has upgraded its recommendation on Elior to 'Overweight' from 'Neutral', while raising its target price from E3.5 to E4.5.

In a sector note, the analyst describes the stock as an attractive case for a business recovery, highlighting its favorable risk/return profile after the 40% decline that followed the publication of its latest results.

Deeming this correction "excessive", the broker acknowledges that the company's forecasts may appear cautious, but stresses that the management team is, in its opinion, showing prudence.

JPMorgan also mentions the company's improving profitability trend, which he sees continuing, as well as leverage to improve its competitiveness in the medium term.

Elior's share price had fallen sharply following the publication of its annual results, its outlook having been deemed particularly disappointing, with a forecast of organic growth of only 3% to 5% for FY 2024-2025.


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