JPM sees healthy volume growth for European business services in H2

Elis SA

30/08/2024 10:18

** J.P.Morgan says it is positive on the European business
services sector and expects volume growth to remain healthy in
the second half of 2024
    ** "Inflation has moderated, with companies now referencing
more normalised levels of both labour and price inflation," it
says
    ** It factors in the slower inflation, high margins, reduced
debt levels and the impact of the U.S. presidential election
    ** JPM rates France's Elis  ELIS.PA  and Spie  SPIE.PA  as
"overweight" as it resumes coverage on both
    ** "We see potential for medium-term margin improvement and
room for a re-rating," JPM says about Elis, which it expects to
be able to capture further volume growth
    ** It places Elis and RS Group  RS1R.L  ("neutral") on a
positive catalyst watch, and Rentokil  RTO.L  ("neutral") on a
negative one

 (Reporting by Gianluca Lo Nostro)
 ((gianluca.lonostro@thomsonreuters.com;))