Sodexo : Good timing to anticipate a continuation of the trend

01/23/2023 | 02:33am EST

long trade Live

Entry price : 91.4€ | Target : 100€ | Stop-loss : 85€ | Potential : 9.41%

The current trading zone is interesting to the point that investors should pay attention to the stock and anticipate a return of the underlying upward trend. Investors have an opportunity to buy the stock and target the € 100.

Summary

• The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
• Overall, and from a short-term perspective, the company presents an interesting fundamental situation.
• According to Refinitiv, the company's ESG score for its industry is good.

Strengths

• The company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.61 for the 2023 fiscal year.
• Over the last twelve months, the sales forecast has been frequently revised upwards.
• Over the last 4 months, analysts have significantly revised upwards the company's estimated sales.
• For the last twelve months, analysts have been gradually revising upwards their EPS forecast for the upcoming fiscal year.
• Analysts remain confident with respect to the group's activity and, more often than not, have revised upwards their earnings per share estimates.
• Analysts covering this company mostly recommend stock overweighting or purchase.
• Over the past four months, analysts' average price target has been revised upwards significantly.
• Consensus analysts have strongly revised their opinion of the company over the past 12 months.
• Considering the small differences between the analysts' various estimates, the group's business visibility is good.

Weaknesses

• As a percentage of sales and without taking into account depreciation and amortization, the company has relatively low margins.
• The company does not generate enough profits, which is an alarming weak point.

Ratings chart

Subsector Other Restaurants & Bars

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