Sodexo
SW: XPAR (FRA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
€94.00 | Vynrgn | Yfhxchtv |
Sodexo: Not Cooling Down Yet
The negative share price reaction on June 30 belies another strong update from narrow-moat Sodexo. Organic revenue growth came in above 10%, despite year-over-year comparables becoming tougher. The full-year outlook was also confirmed, which if achieved, means the recovery from the coronavirus pandemic is complete. We reiterate our EUR 118 fair value estimate and believe the shares offer plenty of upside potential from here.