Sodexo: Credit Suisse remains negative

(CercleFinance.com) - Credit Suisse still recommends investors sell the Sodexo stock ("underperform rating") after a disappointing publication by the French contract catering group.


The broker has cut its target price for the share from 100 euros to 97 euros.

Analysts draw conclusions from the quarterly trading update made by the French group this week. Now, their organic growth forecast "the lower half of the company 2-4% guidance range," says a research report. "Hitting the top end of that range already looks highly unlikely, the broker states in its report, "given the implied 5% growth that would be needed from Q2-Q4 2017-18."

Credit Suisse has reduced its EPS estimates by 3% for 2019 and beyond.




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