Elior Group Stock Attempts a +2% Rebound After Hitting a Three-Year Low
Elior Group's stock attempts a technical recovery mid-session, following a sharp correction triggered by the lowering of its annual targets. The environment remains challenging, marked by a downgrade in analyst recommendation and a significant increase in short positions on the stock.
A Modest Rebound Leaves the Stock Far from Its Long-Term Moving Averages
Elior Group's stock is up 1.99% at €1.899 at midday, in a SBF 120 that is up 0.55%. The stock remains far from recovering the 28.07% decline recorded over the month, a direct consequence of the lowered annual guidance announced on May 20. The price is 23.12% below its MM20 (€2.47) and 28.34% below its MM200 (€2.65), a gap that illustrates the extent of the downturn. The RSI at 26 indicates a pronounced oversold condition, consistent with the test of the support at €1.86 touched during the new three-year low. During the first half of 2025-2026 (May 20, 2026), the group had revised its organic growth forecast to a range of 1% to 2% and targeted an adjusted EBITA margin around 3%, down from 3.5-3.7% previously.
Bernstein Aligns Its Target with the Price and Short Positions Intensify
This Tuesday, Bernstein lowered its price target from €3.00 to €1.90, while maintaining its underperform rating. The new target is almost identical to the current price, leaving little theoretical margin based on this recommendation. Based on the expected earnings per share, the stock is priced at about 5.3 times the earnings for the current fiscal year, according to the consensus of analysts surveyed. Meanwhile, the bearish bet has significantly intensified: eight funds now cumulatively hold 6.54% of the capital sold short, after an increase of 3.83 points in thirty days. This rapid rise reflects the arrival of institutional investors positioned against the stock since the earnings warning, a pressure signal that must be monitored without making it an isolated verdict. The next deadline for shareholders remains the tightening on the leverage ratio, expected to be about 3.5 times by the end of September 2026 according to the revised guidance.
