Update shared on 25 Nov 2025
Fair value Decreased 2.12%Sodexo's analyst price target has been revised downward by approximately €1.25. Analysts cite slightly softer profit margins and a higher discount rate, even though revenue growth projections remain steady.
Analyst Commentary
Bullish Takeaways- Bullish analysts highlight the company’s stable revenue growth outlook, which remains unchanged despite recent market headwinds.
- The maintenance of neutral or equal weight ratings by major firms suggests confidence in Sodexo’s overall market positioning.
- Operational resilience is noted as a supportive factor for valuations, with execution risk perceived as manageable in the current environment.
- Bearish analysts point to softened profit margins as a key concern, which may pressure earnings in the near term.
- Recent adjustments in price targets, including downgrades from major institutions, signal caution around the company’s upside potential.
- A higher discount rate applied in valuation models reflects a more conservative approach to future cash flows and macroeconomic risks.
- Unchanged ratings from analysts, despite target cuts, highlight a cautious stance regarding Sodexo’s ability to outperform peers.
What's in the News
- Sodexo S.A. will be added to the Euronext 150 Index, reflecting an elevation in its market visibility. (Key Developments)
- The company has announced a special or extraordinary shareholders meeting to be held on December 16, 2025, in Boulogne-Billancourt, France. (Key Developments)
- Sodexo is pursuing strategic M&A activity, targeting mid-sized bolt-on acquisitions, particularly in food services and convenience; the acquisition of Grupo Mediterránea in Spain is set to double its footprint in the country by year-end. (Key Developments)
- The company has proposed a dividend of EUR 2.70, representing a 1.9% increase year-over-year, to be voted on at the upcoming shareholders meeting. (Key Developments)
- The Board of Directors announced Thierry Delaporte will become Group CEO effective November 10, 2025, succeeding Sophie Bellon. (Key Developments)
Valuation Changes
- Fair Value Estimate has decreased from €58.99 to €57.74, reflecting a modest downward revision.
- Discount Rate has risen slightly from 9.69% to 9.77%, indicating a more conservative approach to risk.
- Revenue Growth projection has increased marginally from 2.18% to 2.21%.
- Net Profit Margin expectation has edged down from 2.94% to 2.91%.
- Future P/E Ratio forecast has declined from 14.83x to 14.68x.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.