ELIOR : Stifel downgrades its recommendation
The broker points out that the catering and services group 'has lowered its margin forecast for the second time this year, this time citing higher-than-expected launch costs for new contracts'.
As a result, Stifel has reduced its EBITA estimates by 40% for this year, and by around 25% for subsequent years, and 'does not see a return to positive FCF generation before 2025, reflecting a combination of inflation and structural weaknesses'.
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