Bernstein starts Elis at 'outperform' on growth and shareholder returns prospects

Elis SA

16/05/2024 09:47

** Bernstein starts coverage of French hygiene group Elis
 ELIS.PA  with "outperform", citing its sales growth guidance,
M&A and shareholder return prospects, and low valuation 
    ** The broker expects Elis to grow its sales by 5% this year
- same as Elis' own guidance - adding that productivity efforts
and energy hedging policies should support EBITDA margin
expansion 
    ** "We therefore expect a 35% EBITDA margin in 2024, in line
with group guidance, and 20bp margin improvement p.a. (per
annum)" - Bernstein 
    ** Last year was light in terms of M&A, but Elis now has
around 150 million to pursue acquisitions this year, and should
pay about 100 million of cash dividends in 2024 for last year,
the broker adds 
    ** The shares' current discount is "unjustified," adds
Bernstein, and sets a price target of 26.60 euros, 18% higher
than Elis' Wednesday closing price of 22.46 euros
    ** Out of 12 analysts that cover Elis, 11 rate the stock
"strong buy" or "buy, and one rates it "hold" 

 (Reporting by Olivier Sorgho)
 ((Olivier.Sorgho@thomsonreuters.com))