(CercleFinance.com) – Sodexo gained nearly 2% on Friday on the Paris Stock Exchange, returning to its best levels since the end of 2017, in the wake of positive comments from Morgan Stanley which said it saw an attractive risk/return profile on the title.
Around 10:00 a.m., the stock advanced 1.8%, the second best performance in the SBF 120 index, after gaining up to 2.6% at the opening.
Morgan Stanley this morning raised its recommendation on the value from ‘weight in line’ to ‘overweight’, with a price target raised from 86 to 96 euros.
In its research note, the financial intermediary estimates that a simplification of the group’s complex capital structure could add around 10% to the current market capitalization.
He adds that his work also goes in the direction of a lasting recovery of the American collective catering market.
At the same time, the analyst underlines that a growing exposure to group purchasing organizations (GPOs), vending machines and the American market, to the detriment of service and building management (facility management) could allow for the company to improve its profit margins by around 0.8 percentage points.