(News Bulletin 247) – UBS reiterates its advice to buy the stock and raises its price target from E101.50 to E111 after the announcement of results up more than 30% in the 1st half.
Sodexo also announced a plan to spin-off and list benefits and rewards services in 2024, to ‘create two pure players, both benefiting from strong cash-generating business models’.
“We believe the split and the potential for capital returns provide additional upside potential for equities,” UBS said.
On the strength of these results, which exceeded its expectations, Sodexo slightly increased its organic growth target for the 2023 financial year, now expected to be close to +11%, also driven by a contribution from price increases in the second half.
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