Elior Group Stock: Short Sellers Double Down After Profit Warning
Elior Group makes a slight recovery mid-session, after a week of significant corrections following the lowering of its annual targets. However, the stock remains far from its moving averages, and analysts continue to lower their targets. Moreover, the bearish bet on the stock has significantly increased following recent statements.
Goldman Sachs and Citi Lower Targets After Semi-Annual Account Warning
Elior Group is up 1.84% to €1.9095 in session, in a SBF 120 up by 1.1%. A modest rebound that does not change the trajectory: the stock is still down 7.49% over the week and has lost 31.46% over three months. The pressure comes from the semi-annual results published on May 20, which led the group to lower its 2025-2026 organic growth target from 3-4% to 1-2% and its adjusted EBITA margin to about 3%, from previously 3.5-3.7%. The punishment was immediate, with a 25% drop the following day. Subsequently, analysts adjusted their targets: Goldman Sachs yesterday reduced its target from €2.95 to €2.00, maintaining a neutral rating, and Citi set a new target at €2.40 on Wednesday. Based on the consensus of the analysts surveyed, the stock is trading at about 5.3 times the earnings expected for the current fiscal year.
Cumulative Short Position at 5.45% of Capital and Price Still Below Its Three Moving Averages
Today's rebound comes from very depressed levels. The price is below the MM20 (€2.54), the MM50 (€2.52), and the MM200 (€2.66), with a gap close to 28% for the long average. The RSI at 26 reflects the magnitude of the selling pressure in recent sessions, following the breach of the previous low reported at the beginning of the week. The technical support threshold is now identified at €1.88, just below the current price. Moreover, the bearish bet has significantly strengthened. Seven funds cumulate 5.45% of the capital sold short, according to the declarations consulted, up from 2.71% a month ago (+2.74 points). This level reflects the position of institutional investors skeptical about the short-term evolution of the case, as the guidance deteriorated. At this stage, the dynamics will be dictated by the group's ability to adhere to its new roadmap (organic growth of 1 to 2% and EBITA margin around 3% for the fiscal year).
