Citi Ups Elior to Buy

Per Citi’s report:

« We see value in Elior following the recent de-rating. We trim FY18-20E EBITDA forecasts 2-3%, but EPS falls c10% to reflect higher D&A guidance. The contract and concession catering industries are in structural growth and the European macro backdrop is supportive. Given expectations have been rebased, we now see upside risk to margin forecasts over time. The stock trades at over a 30% EV/EBITDA discount to peers, which offers an attractive entry point. »

No indication of fair value estimate so far.