Elior: Stifel maintains sell rating, cuts target price

(CercleFinance.com) - Stifel reinstates its "sell" recommendation on Elior shares, having lowered its target price for them from 3.
5 euros to 2.8 euros (current price: 2.9 euros, -4.2%), reflecting its reduced estimates after H1 2021-22 results that "brought its share of disappointing news".

The broker said it remains cautious regarding the pace of margin recovery and free cash flow generation, and believes that "mid-term targets are still too ambitious, at both the top-line and margins level".

"It makes the financial situation somewhat uncertain, with little visibility around the pace of deleveraging over the next 18 months, and potential risk on the next covenant tests," Stifel adds.



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