Elior: Stifel upgrades stock

(CercleFinance.com) - On Tuesday Stifel upgraded its rating on Elior shares from "sell" to "hold", while nudging up its target price for them from 2.
2 euros to 2.9 euros.

In a study on the professional services sector, the broker justifies its decision by a reduction in market forecasts for FY 2023 and the launch of a strategic review that is likely to allay concerns about the company's balance sheet.

For Stifel, there is now a limited risk of further disappointment, with the prospect of another year of negative cash flow no longer being an unpleasant surprise to investors.

The review of strategic options could bring some relief, offering alternative scenarios to the capital increase that investors have been dreading in light of concerns about the company's balance sheet, the analyst concludes.


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