On Wednesday, Berenberg renewed its buy recommendation on Sodexo shares, while raising its price target from 113 to 116 euros.

In a research note, the research firm explains that it expects the company's on-site services (OSS) activities, i.e. catering and building management for companies, campuses, hospitals, retirement homes and schools, to continue to perform well after the spin-off from Pluxee.

For Berenberg, Sodexo remains a leading group within the sector, set to benefit from buoyant trends, particularly in foodservices.

Demand for outsourcing remains strong, and the increasing complexity of foodservices activities should lead to new contracts, given the Group's offering and geographic footprint", he stresses.

With the addition of potential M&A transactions, the Group should continue to generate growth in the medium term, analysts note.

Berenberg specifies that its new price target of 116 euros takes into account a valuation of 34 euros for Pluxee and 82 euros for the activities to be retained within the scope of consolidation.

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