For the broker, the risks are great that the collective catering group will not live up to consensus expectations. Stifel is revising its financial forecasts sharply downwards for the coming years.
Despite a relapse of 15% in two days, Stifel remains short of Elior, which still loses nearly 20%. | Photo credits: Elior
Another sharp drop in Elior on the stock market on Monday. At the end of the morning, the title of the collective catering group fell by almost 20%, to 2.17 euros, despite a decline of more than 15% cumulatively during the two sessions on Thursday and Friday.
For Stifel analysts, who maintain their recommendation to “sell” with a price target of 2.20 euros, against 2.80 previously, the risks are high that the company will not manage to meet analysts’ consensus expectations. . Risks related to the current inflationary environment, labor shortages and one-time charges following the arrival of the new CEO and the rise in interest rates, indicates the broker in its research note for this Monday.
Stifel sharply reduces its financial forecasts for the next three years. It now expects a gross operating surplus (Ebitda) of -48 million euros in 2021-2022, against -31 million previously, of 53 million in 2022-2023 (91 million previously) and 100 million in 2023-2024 ( 133 million initially). Free cash flow is not expected to be positive before this same financial year.
Since the beginning of the year, the action has lost two thirds of its value and 90% over five years.