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The group’s FY23 results were consensus-meeting and guidance-beating, while the to-be-spun-off Pluxee comfortably outperformed, offsetting the below-consensus On-Site Services. Regardless, we reconfirm our Add opinion on Sodexo’s current shares as a way into the promising-looking Pluxee and to capture the potential upsides for both entities following the unwinding of the conglomerate discount. We will upgrade our estimates for ex-Pluxee Sodexo and we reiterate our upbeat stance on the to-be-list
Companies: Sodexo (SW:EPA)Sodexo SA (SW:PAR)
AlphaValue
Sodexo reported a buoyant Q3 and broadly maintained its FY23 outlook, but now with a better forecast for its Benefits & Rewards Services. We expect no material changes in the consensus or our estimates.
Following the consensus-beating H1 results, more upbeat FY guidance and the plan to spin-off and list the promising BRS unit, Sodexo’s share price rose by +10%. The spin-off of BRS should be well-received as it is expected to foster further cash generation potential and unblock the conglomerate discount. We expect an upgrade in the consensus and our target price has been raised by 7.5%.
Sodexo has reported a slightly-consensus-beating Q1 revenue figure and maintained its FY guidance, which remains in line with analysts’ expectations. However, the stock market seems not to have been convinced, which can be partially explained by the inflation-related concerns. We expect no material changes in the consensus but an upgrade in our FY23 estimates.
Both the FY22 figures and FY23 guidance were positioned above the market’s expectations, bolstering hopes of a full recovery in underlying profit. We expect an increase in the consensus and our estimates. More visibility on the group’s strategic roadmap should be provided at the forthcoming CMD on 2 November.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Sodexo. We currently have 35 research reports from 4 professional analysts.
Companies: Everyman Media Group PLC
Canaccord Genuity
Companies: Marks Electrical Group Plc
Companies: JDW MAB MARS WTB FSTA BOWL CPG SSPG LGRS SSTY OTB HSW TMO GYM MEX
Liberum
Companies: UTL ASC DNLM BWNG MONY DFS BOO
Shore Capital
Pinewood’s transition to a pure-play automotive SaaS business is now largely complete. Today we introduce summary forecasts out to FY26 and reiterate the investment case. We see significant opportunity for Pinewood to grow its user base in the UK and internationally whilst generating high EBITDA margins and cash conversion. With a 24.5p special dividend embedded in the current price (payable Q1/Q2), the effective price today is 12.3p. Based on the Group’s FY27 target of £27m EBITDA, we estimate
Companies: Pinewood Technologies Group PLC
Zeus Capital
Domino’s Pizza Group’s (DOM’s) new CEO has set an ambitious long-term growth target, including an acceleration in its net store opening programme. With better alignment between the company and its franchisees, management believes DOM should be capable of generating improved profit growth, versus that achieved in recent years, and potential higher returns.
Companies: Domino's Pizza Group plc
Edison
Companies: Marks and Spencer Group plc
On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div
Companies: PTAL GHH IGP MSLH PINE NXQ EQLS NXR AXL
Vertu is the fourth largest automotive retailer in the UK, with 188 sales outlets and a track record of cross-cycle growth, principally through businesses it has acquired, funded by equity, debt and most importantly cash generation. Vertu operates across the entire vehicle lifecycle, including new and used vehicle sales, and vehicle servicing, repair and parts. Service and repair is a 40+% gross margin repeating business. With economic headwinds, the transition to electric vehicles, recent overs
Companies: Vertu Motors PLC
Progressive Equity Research
Companies: Safestay Plc
17th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: 16 April 2024: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radi
Companies: ARS TIDE SCE SNX ECK CNS TST SPEC SSTY
Hybridan
React Group is a well-managed, growing UK services business with a high degree of recurring revenues (c87%).
Companies: REACT Group Plc
Dowgate Capital
Companies: SSP Group Plc
Today’s trading statement from ZOO highlights a ramp-up in demand following the end to the industry-wide strikes of last year. ZOO struck a note of caution in its January update regarding the timing of orders. However new productions are starting to translate into a healthy order pipeline, with a good recovery in revenue anticipated in H1 FY25. The update guides to revenue of at least $40m for the year to March 2024, ahead of our estimate at $36.8m. We have improved our adjusted EBITDA loss marg
Companies: ZOO Digital Group plc
During 2023, ME Group commenced the deployment of its next generation photobooths, which are integrated with the group’s newly developed proprietary software, gained market leadership in the Japanese photobooth market with an acquisition, continued to roll out laundry units with existing and new location partners, commenced a share buyback programme and gained entry into the FTSE 250. 2023 was a year of significant strategic and financial progress, with sales up 15%, EPS up 31% and net cash main
Companies: ME Group International plc
Cavendish
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