Sodexo : Good timing to anticipate the return of volatility
Entry price | Target | Stop-loss | Potential |
---|
€99.16 |
€110 |
€94 |
+10.93% |
---|
Sodexo shares stand out with an interesting technical chart pattern displaying horizontal consolidation. One would assume that the current accumulation phase will cede eventually to an acceleration to the upside.
Summary● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company's Refinitiv ESG score, based on a ranking of the company relative to its industry, comes out particularly well.
Strengths● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● Analyst opinion has improved significantly over the past four months.
● Analysts' price targets are all relatively close, reflecting good visibility on the company's valuation.
Weaknesses● As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
● The company sustains low margins.
● The sales outlook for the group was lowered in the last twelve months. This change in forecast points out a decline in activity as well as pessimistic analyses of the company.
● For the last four months, EPS estimates made by Standard & Poor's analysts have been revised downwards.
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