Sodexo : Expectation of a turn-around
Entry price | Target | Stop-loss | Potential |
---|
€76.6 |
€87 |
€70 |
+13.58% |
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Shares in Sodexo reflect an interesting technical chart pattern allowing for a bet on a reversal of the medium term trend.
Summary● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company presents an interesting fundamental situation from a short-term investment perspective.
● The company has a good ESG score relative to its sector, according to Refinitiv.
Strengths● The earnings growth currently anticipated by analysts for the coming years is particularly strong.
● The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.63 for the 2022 fiscal year.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● Analyst opinion has improved significantly over the past four months.
● Consensus analysts have strongly revised their opinion of the company over the past 12 months.
Weaknesses● The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
● The company sustains low margins.
● The company appears highly valued given the size of its balance sheet.
● The group usually releases earnings worse than estimated.
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