Sodexo : Good timing to go long again
Entry price | Target | Stop-loss | Potential |
---|
€92.62 |
€100 |
€89 |
+7.97% |
---|
The support at 91.82 EUR, which is currently being tested, should allow Sodexo shares to move back 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 presents an interesting fundamental situation from a short-term investment perspective.
● According to Refinitiv, the company's ESG score for its industry is good.
Strengths● The stock, which is currently worth 2023 to 0.65 times its sales, is clearly overvalued in comparison with peers.
● The average price target of analysts who are interested in the stock has been strongly revised upwards over the last four months.
● There is high visibility into the group's activities for the coming years. Outlooks on future revenues from analysts covering the equity remain similar. Such hardly dispersed estimates support highly predictable sales for the current and upcoming fiscal years.
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.
● The overall consensus opinion of analysts has deteriorated sharply over the past four months.
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