'A good entry point': RBC ups Elis to 'outperform'

Elis SA

03/08/2026 08:10

** RBC Capital Markets raises French textile services provider Elis ELIS.PA to "outperform" from "sector perform", viewing a recent stock decline as a "good entry point"
** The broker views the post-earnings stock price decline of about 5% as "anomalous" given the company's solid first-half earnings and reiterated guidance for financial year 2026
** It adds that management's confidence around the pricing outlook suggests an acceleration in organic sales growth back to over 4% in 2027
** Despite Elis' laundries being energy-intensive, RBC notes significant hedging is in place, expecting gas and electricity costs to fall year-on-year in 2026 and again in 2027
** The broker raises its price target on the stock to EUR 28, viewing the company as a defensive compounder with a multi-decade track record of core profit margin resilience
** Among the 15 analysts covering Elis, 14 rate the stock "strong buy" or "buy" and ​one analyst rates "hold" - LSEG data
     

(Reporting by Clement Martinot)
((Clement.Martinot@thomsonreuters.com;))