Update shared on02 Sep 2025
Fair value Decreased 1.75%Analysts have modestly reduced Sodexo’s price target to €66.78, citing concerns over slower margin improvement, uncertainty around client retention and new business wins, and persistent macroeconomic headwinds.
Analyst Commentary
- Bearish analysts are reducing price targets, citing concerns around Sodexo’s near-term growth outlook.
- Slower-than-expected margin improvement is weighing on sentiment and prompting downside revisions.
- Uncertainty regarding client retention and new business wins is impacting confidence in forward revenue projections.
- Macroeconomic headwinds and inflationary pressures are noted as constraints on further operating leverage.
- Softer guidance and cautious management commentary are leading to more conservative valuation assumptions.
What's in the News
- Sodexo expects fiscal year 2025 organic revenue growth at the lower end of its guidance range, between +3% and +4%.
Valuation Changes
Summary of Valuation Changes for Sodexo
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from €67.84 to €66.78.
- The Consensus Revenue Growth forecasts for Sodexo has fallen slightly from 2.3% per annum to 2.3% per annum.
- The Future P/E for Sodexo remained effectively unchanged, moving only marginally from 15.74x to 15.61x.
Disclaimer
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