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Elior Group's fair value estimate has been cut from €3.11 to €2.46, bringing it closer to Street price targets that now cluster in the mid €2 range. This reset aligns with recent analyst commentary, where profit warnings and reduced earnings estimates are contributing to lower targets and more neutral or hold ratings. As you read on, you will see how these shifting targets shape the current narrative around the stock and what to watch as it evolves.
What Wall Street Has Been Saying
🐂 Bullish Takeaways
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Kepler Cheuvreux, even after moving to Hold, still sets a €2.90 target, above some peers, which suggests room for improvement if the company delivers on its reset.
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The cluster of targets from Kepler Cheuvreux at €2.90, Deutsche Bank at €2.50, and Citi at €2.40 helps anchor expectations and can give you a clearer reference point when comparing the current share price.
🐻 Bearish Takeaways
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Citi cut its rating from Buy to Neutral and lowered its target from €3.60 to €2.40, highlighting that the recent profit warning and estimate cuts limit perceived upside at current levels.
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Deutsche Bank lowered its target from €3.20 to €2.50 and kept a Hold rating, and Kepler Cheuvreux shifted from Buy to Hold with a target move from €3.70 to €2.90, which together point to more cautious expectations on execution and recovery.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives!
We've flagged 3 risks for Elior Group. See which could impact your investment.
How This Changes the Fair Value For Elior Group
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Fair Value: reduced from €3.11 to €2.46, a cut of roughly 21%, bringing the estimate closer to Street targets in the mid €2 range.
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Revenue Growth: adjusted from 3.06% to 2.93% in the updated model.
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Net Profit Margin: lowered from 1.48% to 1.30% on expected profitability per € of revenue.
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Future P/E: moved from 11.25x to 10.18x on forward earnings forecasts.
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Discount Rate: changed from 12.3% to 12.48% as the required return applied to future cash flows.
Never Miss an Update: Follow The Narrative
Narratives connect Elior Group's business story to a set of analyst forecasts and a fair value estimate, so you can see how expectations line up with the latest information. They update over time as new data, news, and risks are factored in.
Head over to the Simply Wall St Community and follow the Narrative on Elior Group to stay up to date on:
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How expansion into healthcare and senior living, combined with a more decentralized regional model, is aimed at building stable, recurring contract catering revenues.
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The role of cost savings, digitalization, and central kitchen investments in supporting higher margins and potential benefits from industry consolidation.
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Key risks such as contract losses, rising labor costs, relatively high debt levels, and competitive and regulatory pressures that could affect growth and profitability.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include ELIOR.PA .
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