Deutsche Bank ups Elior to 'buy', shares jump

Elior SA

27/11/2023 08:16

** Deutsche Bank upgrades Elior  ELIOR.PA  to "buy" from
"hold", sending shares up 6%, after the French catering group
beat FY EBITA expectations last week
    ** "The worst is probably over" for Elior, the broker says,
noting the group now focuses on "accretive growth and
de-leveraging"
    ** DB lowers adjusted EBITA margin estimates by -10 bp to
-20 bp for every year, leading to a 3.5% estimate for FY 2026,
which it says seems achievable, aided by higher synergies
    ** "The expected return to positive FCF should help," it
adds, and notes no major refinancing is expected before 2026
    ** Out of 15 analysts that cover Elior, six rate the stock
"strong buy" or "buy", ​three "hold", and six "strong sell" or
"sell" - LSEG
    ** Including Monday's rise, shares are down 23%​
year-to-date
    

 (Reporting by Gaëlle Sheehan)
 ((gaelle.sheehan@thomsonreuters.com; +48 58 7785110;))