JPM ups Elior to 'neutral', says earnings past the worst

Elior SA

14/12/2023 09:12

** J.P. Morgan upgrades Elior  ELIOR.PA  to "neutral" from
"underweight", saying the "worst of" the French catering group's
earnings downgrade cycle, is "behind us"
    ** The brokerage says that the appointment of Daniel
Derichebourg as CEO alongside the acquisition of DMS could
provide some answers on overall momentum and the path to margin
recovery
    ** However, it warns of Elior's high exposure to Europe,
elevated inflation, mixed execution and elevated leverage,
    ** JPM adds that there is still too much uncertainty and
limited evidence on the key building blocks to restore Elior's
overall competitiveness and profitability
    ** Out of 15 analysts covering the stock, six rate it
"strong buy" or "buy"​, four "hold" and five​ "strong sell" or
"sell"
        ** Elior shares rise 5.8%, and the stock is down 18.36%
year-to-date
  
    

 (Reporting by Augustin Turpin)
 ((augustin.turpin@thomsonreuters.com))