Sodexo : Very little upside potential, so the risk for a correction is significant
Entry price | Target | Stop-loss | Potential |
---|
€90.62 |
€86.62 |
€93.05 |
+4.41% |
---|
Sodexo shares can be expected to top out below the medium term resistance at 95.78 EUR. The timing appears attractive to take advantage of a correction below this level.
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 company is one of the most undervalued, with an "enterprise value to sales" ratio at 0.62 for the 2023 fiscal year.
● Over the last twelve months, the sales forecast has been frequently revised upwards.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
Weaknesses● The company's profitability before interest, taxes, depreciation and amortization characterizes fragile margins.
● The company does not generate enough profits, which is an alarming weak point.
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