Elis: Société Générale raises target price.

(CercleFinance.com) - Société Générale (SG) has not given up on the stock - quite the contrary.
.. Indeed, analysts maintain their buy rating on the French industrial cleaner Elis, expecting that estimated synergies with Berendsen will be revised upwards in early 2018.

SG has increased its 12-month target price by over 15% to 26.8 euros, compared to 23.2 euros previously.

Société Générale has revised its estimates and since 15 September has taken into account the transformative acquisition of Berendsen in its estimates for the group. "This new phase will give Elis a better geographic balance," SG says in its research report.

"By our estimates, the UK is likely to offer the strongest potential as the region where the group's margins have suffered the most," SG adds, as the margin of its British entity was 10.9% in 2015, compared with 15.3% for the group as a whole.


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