Sodexo: Oddo BHF maintains 'reduce' rating

(CercleFinance.com) - Oddo BHF reiterates its "reduce" recommendation on the Sodexo stock, along with its target price of 77 euros, the day after the services group unveiled its 9m 2017-18 sales figures.


The broker believes that Sodexo's organic growth is unlikely to accelerate before mid-2019, and that it will strongly depend on the stimulus measures announced at its Investor Day, which is scheduled for 6 September.

Without a sharp acceleration in growth, the group's operating leverage should remain weak in the short/medium term and limit the improvement in its operating margin, warns the analyst, who also believes that the Sodexo is currently trading at a generous valuation.



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