Elior jumps after core profit beat, raised synergy target

Elior SA

22/11/2023 08:34

** Shares in Elior  ELIOR.PA  rise 7.5% after the French
catering group beat FY EBITA expectations and hiked 2026 synergy
target related to the integration of Derichebourg Multiservices
(DMS)
    ** However, its 2024 organic sales growth target came below
analysts' expectations
    ** "The positive stock performance should mainly be
explained by the less worrying net debt profile and forecast and
the upgraded target of cost synergies, while the guidance cut is
much expected by the market," Alphavalue analyst Yi Zhong says
    ** J.P.Morgan points to EBITA a touch ahead of expectations
and to increased synergies as positives points in a "mixed" FY
statement
    ** Elior sees organic revenue growth of 4-5% in FY 2024, vs
analysts' forecast of 5.9% in a company-compiled consensus
    ** The stock is the second best performer on France's SBF
index  .SBF120 

 (Reporting by Federica Mileo in Gdansk)
 ((Federica.mileo@thomsonreuters.com))