Oddo BHF reaffirms its 'underperform' rating on Elior, while raising its target price from 1.5 to 1.9 euros, a slight downward revision of its estimates being largely offset by the rollover of its DCF and market multiples over 2024.

While it remains confident about the sector's fundamentals, the research firm believes that Elior 'has accumulated a number of strategic and operational errors over the past few years, making its turnaround more protracted in the foodservices sector'.

'We think it will probably take two or three years to turn the group around, in a context of a balance sheet that is currently tight', warns the analyst, adding that the valuation remains high in his view in relative terms.

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