Sodexo: heavily sanctioned for its trading update

(CercleFinance.com) - Sodexo is down by almost 8%, making it the red lantern on the SBF120, after announcing sales of 6.
4 billion euros for its first quarter of fiscal 2025, missing the consensus by 2%.

With organic growth of 4.6%, 0.6 points below its expectation, Oddo BHF believes that a strong acceleration in growth in the second half will be required to achieve the 5.5-6.5% target range maintained for the current financial year.

We expect slightly negative consensus adjustments for Sodexo, with the consensus probably positioned at the very bottom or below the target range for organic growth", warns the research firm.

However, remaining "confident in Sodexo's ability to continue its operational progress (sustainable improvement in growth and profitability)", Oddo BHF remains "outperform" and maintains its price target of 98 euros on the share.

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