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Sodexo faces significant challenges as Barclays and HSBC downgrade the stock, citing concerns over growth prospects, contract retention, and profit margins. HSBC has cut its price target to €60, highlighting weak commercial performance and the loss of a major client, while Barclays emphasizes rising costs and competitive pressures. The recent announcement of another large contract loss is expected to further impact Sodexo's financial stability and long-term profit trajectory.
Every morning before European markets open, analysts provide updated recommendations on key companies, including Kering, UBS, Arkema, and Air France. This information highlights changes in opinions or price targets, offering insights into stock movements and market sentiment.
Analysts have made several adjustments to their recommendations for various companies. Notable changes include Deutsche Bank lowering Air France-KLM's sell recommendation to EUR 8.50 and JPMorgan downgrading Arkema and BASF to Underweight with targets of EUR 68.50 and EUR 45, respectively. Meanwhile, Genfit received a Buy rating from Van Lanschot Kempen, targeting EUR 9, and Nexity was initiated with a Buy coverage by CIC, targeting EUR 12.
Goldman Sachs has downgraded Sodexo's stock from Buy to Neutral, slashing the price target to €73.00 from €96.00 following disappointing first-half results that missed market expectations. The company has also lowered its full-year guidance, leading to a projected 7% decrease in EBIT from 2025 to 2029. Meanwhile, Deutsche Bank maintains a Buy rating with a target of €93.00, while Bernstein has downgraded its rating to Market Perform with a target of €86.80, reflecting mixed analyst sentiments on Sodexo's financial outlook.
UBS has reaffirmed its 'buy' recommendation for Sodexo while reducing its price target from 98 to 73.5 euros, indicating a 20% upside potential for the company. Despite acknowledging short-term challenges, UBS anticipates that a favorable market environment will support medium-term growth, arguing that Sodexo's 50% valuation discount to Compass is unwarranted.
UBS maintains a 'buy' rating on Sodexo while reducing its target price from €98 to €73.5, indicating a 20% upside potential for the stock. Despite acknowledging short-term challenges, UBS anticipates a favorable market environment will support medium-term growth, deeming the current valuation discount to Compass as unjustified.
European stock markets declined as investors reacted to recent monetary policy decisions, with Germany's DAX falling 1.9% and France's CAC 40 down 1.3%. Commerzbank shares plummeted over 5% after CEO Bettina Orlopp stated there had been no discussions with UniCredit regarding a stake acquisition. Meanwhile, oil prices saw slight declines following a report of increased U.S. crude inventories, despite signs of strong demand.
Sodexo has revised its fiscal 2025 outlook downward, citing weaker organic growth in North America. UBS maintains a Buy rating but has reduced its target price to €98 from €99.50, indicating a 34% upside potential. The company now anticipates organic sales growth of 3-4% and a modest increase in operating margin of 10-20 basis points.
Shares of Compass Group fell 6% after BNP Paribas Exane downgraded the stock from outperform to underperform, citing concerns over client retention in the US Healthcare sector. The firm anticipates a potential 10% price-to-earnings derating and set a price target of 2,500 pence, indicating further decline. In contrast, Aramark remains rated outperform, while Sodexo is underperform.
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.
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The information provided herein is generated by experimental artificial intelligence and is for informational purposes only.
barclays and hsbc downgrade sodexo amid contract loss concerns
11:50 27.03.2025
analysts update recommendations for key european companies before market opening
08:38 27.03.2025
analysts downgrade recommendations for major companies ahead of market opening
Swiss Franc
Euro
British Pound Sterling
Swedish Krona
Prysmian S.p.A.
Pets at Home Group Plc
Kering SA
Qt Group Oyj
Sodexo
Nexity SA
Alfa Laval AB
Arkema S.A.
Genfit S.A.
Cellnex Telecom, S.A.
LVMH
Clariant AG
Ryanair Holdings plc
Victrex plc
easyJet plc
Air France-KLM
HENSOLDT
BASF SE
FRA
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08:38 27.03.2025
goldman sachs downgrades sodexo stock amid disappointing financial results
07:47 26.03.2025
ubs maintains buy rating on sodexo while lowering price target to 73.5 euros
12:00 24.03.2025
ubs maintains buy rating on sodexo while lowering target price
11:57 24.03.2025
European stocks decline as central bank decisions weigh on markets
Swedish Krona
British Pound Sterling
United States Dollar
Euro
Norwegian Krone
DEUTZ
UniCredit S.p.A.
Commerzbank AG
Hapag-Lloyd AG
Sodexo
SWE
DEU
FRA
GBR
Bettina Orlopp
Show more
11:56 20.03.2025
Sodexo lowers fiscal 2025 outlook amid weaker North American growth
11:40 20.03.2025
compass group shares drop 6 percent after downgrade by bnpp exane
10:11 19.03.2025
Sodexo's share price drop seen as overreaction by UBS analyst
07:00 21.01.2025
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