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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.
10:40 04.12.2024
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