Elior jumps after Midcap Partners ups to 'buy'

Elior SA

16/11/2023 09:02

** Shares in French caterer Elior  ELIOR.PA  surge 9% after
Midcap Partners raised its rating to "buy" from "hold" as it
sees potential for recovery
    ** "Its capable new management team, robust Multiservices
business and less complicated price-inflation equation form the
ingredients for a recovery that will soon turn to reality", the
broker says
    ** Midcap sees the group's new CEO Daniel Derichebourg as
the "right man" to turn around the Foodservice business,
following his expertise in the field
    ** The new Multiservices activity is highly reliable, the
broker says, pointing to its resilience and cash generation
    ** "From H1'24 onwards, Elior should benefit from a
favourable price/inflation spread, enabling it to improve
margins" - Midcap
    ** The stock is on track for its best day since December
2022 and is among the best performers of France's SBF 120
 .SBF120  index
    

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