{
}
The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
Sodexo's recent share price drop has been deemed an overreaction by UBS analyst Ivar Billfalk-Kelly, despite the company's first-quarter results falling short of expectations. He highlights strong sales momentum for the remainder of the year and significant growth opportunities in the foodservice sector, where $360 billion remains internalized by companies. Additionally, he notes that Sodexo's operating profitability growth margin is underestimated, with a projected RO of 5.9% by 2029, and the stock trades at a 45% discount compared to its main competitor, Compass.
UBS has maintained its 'buy' recommendation for Sodexo, adjusting the price target from 101 to 99.5 euros, indicating a 37% upside potential for the shares. Despite a weaker-than-expected first accounting quarter, UBS believes the market may be overreacting, given a favorable long-term outlook for the company.
European shares rose, driven by gains in the energy sector, despite mixed economic data. The STOXX 600 index reached a three-week high, influenced by rising euro zone inflation and expectations of interest rate cuts from the European Central Bank. Germany reported higher-than-expected inflation, while Spain's GDP growth remained steady.
UBS has maintained a 'buy' recommendation for Sodexo, increasing its price target from 89.5 to 101 euros, indicating a potential upside of 30%. The firm highlights the underestimated opportunities for sales growth and margin expansion through outsourcing, economies of scale, and purchasing efficiencies, positioning Sodexo as a top choice in the catering sector.
Sodexo
Companies
Sodexo's share price drop seen as overreaction by UBS analyst
07:00 21.01.2025
ubs maintains buy rating on sodexo despite weaker quarterly results
15:08 09.01.2025
European markets rise on energy gains amid mixed economic signals
Euro
Sodexo
CHE
FRA
ESP
DEU
Hugh Lawson
Purvi Agarwal
Janane Venkatraman
Mrigank Dhaniwala
Show more
18:22 07.01.2025
UBS Raises Price Target for Sodexo Highlighting Growth Potential
10:40 04.12.2024
Trending
Subcategory:
Corporate News
Stock Market Updates
Industry Trends
Banking Regulations
Retail and Consumer Goods
Startups & Entrepreneurship
Global Financial Events
Industry Mergers & Acquisitions
Finance Mergers & Acquisitions
European Securities and Markets Authority
Government Policies
CEO Changes
Financial Scams and Security
Private Equity Deals
Government Economic Policies
Domestic Politics
Central Bank Actions
Workplace Trends
Global Trade Developments
Market Analysis and Predictions
Countries:
Companies:
Currencies:
People:
DEUTSCHE BANK AG
Barclays plc
Natwest
UBS AG
Berkshire Hathaway Inc.
MERCK KGaA
Lloyds Banking Group plc
Hsbc Holdings B.V.
HSBC Holdings plc
Rheinmetall AG
Banco Santander SA
Standard Chartered
Delivery Hero SE
Huawei Technologies CO. Ltd.
Wells Fargo & Company
ING Groep N.V.
Unicredit
adidas AG
Google Inc.
Dell Technologies Inc.
United States Dollar
Euro
British Pound Sterling
Indian Rupee
Swiss Franc
Hong Kong Dollar
Japanese Yen
South Korean Won
Chinese Yuan
Canadian Dollar
Saudi Riyal
Australian Dollar
United Arab Emirates Dirham
Russian Ruble
South African Rand
Nicaraguan Córdoba
Indonesian Rupiah
Qatari Riyal
Pakistani Rupee
Egyptian Pound
Seems like the connection with the server has been lost. It can be due to poor or broken network. Please hang on while we're trying to reconnect...
Oh snap! Failed to reconnect with the server. This is typically caused by a longer network outage, or if the server has been taken down. You can try to reconnect, but if that does not work, you need to reload the page.
Oh man! The server rejected the attempt to reconnect. The only option now is to reload the page, but be prepared that it won't work, since this is typically caused by a failure on the server.