AlphaValue cuts rating on Elior Group to 'add' after adjusting forecast

Elior SA

15/04/2024 12:44

** AlphaValue cuts rating on french company specialized in
catering and services Elior Group  ELIOR.PA  to "add" from "buy"
as the brokerage was too optimistic on the forecast
    ** "We have adjusted our forecasts, based on the clearer
insight obtained from Elior's first annual report following its
important acquisition of Derichebourg's Multiservices in 2023
and our recent discussions with the company's senior
management," says AlphaValue analyst Yi Zhong
    ** Brokerage notes that the addition of ISS A/S  ISS.CO  to
Elior's peer group has reduced peer ratios and led to reductions
in comparison-based valuations
    ** It adds that with the trading update and the latest
guidance, it now foresees heavier financial expenses and lower
tax expenses
    ** AlphaValue also cuts the target price to 2.94 euros from
4.25 euros
    ** Out of 13 analysts that cover Elior Group SA, six rate
the stock "strong buy" or "buy, "​four rate it "hold" and three​
"strong sell" or "sell"

 (Reporting by Mathias de Rozario)
 ((mathias.derozario@thomsonreuters.com))