Elior Shares Plunge 25% to €2.10 After Lowering Annual Targets
Elior Group's shares plummet to €2.1040 on Thursday, ranking last in the SBF 120 and the only stock in the segment to lose over 25% during the session. The decline follows a downward revision of the annual guidance, accompanied by a €25 million provision. Two analysis offices have already lowered their price targets subsequently.
Degraded Guidance and an Italian Provision Severely Punish the Stock
The collective catering group released its first half 2025-2026 accounts on Wednesday, with organic growth limited to 1.3% and an adjusted EBITA margin of 3%. Importantly, management has lowered its annual targets: the organic growth forecast has been adjusted from a range of 3 to 4% to a range of 1 to 2%, and the EBITA margin target has been reduced to around 3%, from previously 3.5 to 3.7%. The targeted leverage ratio by the end of September 2026 is now about 3.5x. The delay in the deployment of new contracts and a €25 million provision related to a tariff dispute with an Italian railway operator explain the extent of the adjustment, as detailed in the semi-annual publication. The stock is trading at €2.1040, at the bottom of the SBF 120 while the index gains 0.40%.
Lowered Price Targets and Significantly Deteriorated Technical Setup
Some analysis offices have revised their recommendations. TP Icap Midcap has reduced its target from €3.00 to €2.80, maintaining a 'hold' rating. Oddo BHF has more significantly lowered its target, from €2.90 to €2.50, maintaining an 'underperform' rating. The day's drop breaches the three moving averages: the price is 22.65% below the MM20 (€2.72), 18.45% below the MM50 (€2.58), and 21.49% below the MM200 (€2.68). The support identified at €2.46 has now been substantially broken downwards. According to reviewed statements, the cumulative net short positions amount to 2.62% of the capital, held by four funds, a level almost stable over thirty days (-0.03 point). This modest but constant selling positioning reflects a pre-existing caution from a part of institutional investors, now validated by the guidance revision.
