Although maintaining its 'underperform' rating on Elior, Oddo BHF has raised its price target from 2.5 to 3.3 euros, following the adjustment of its estimates and a reduction in the liquidity discount it applies to the group's shares.

After half-year results that were "reassuring in terms of improved profitability, driven by the ramp-up of synergies and cost-cutting efforts", the research firm hails the operational progress achieved, which "should continue over the coming months".

Nevertheless, from a sector point of view, Oddo BHF feels that the Elior Group's situation is 'less attractive than its main competitors Sodexo and Compass, which have bounced back more quickly from the pandemic'.

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