This world leader in quality of life services has raised its outlook for the first half of the year despite an environment for collective catering which is still deteriorating. Lagging behind the rest of the market, its title is not very expensive and offers potential that can be amplified with a turbo call.
At the head of the largest increases in the SBF120 index to date, Sodexo shares returned to their best six-month levels around 76 euros. Graphically, the overflow of this resistance would send a very positive signal of the continued upward acceleration of the action towards a first target located at 83 euros but especially towards the threshold of 93 euros. It would suffice for the vaccination campaigns started all over the world to start producing the first results by reducing the circulation of the virus and allowing the start of a certain normalcy in economic life. Enough to restore visibility to Sodexo’s business services division, which is still heavily penalized by restrictive measures, lockdowns and the cancellation or postponement of major sporting events such as the Tokyo 2020 Olympic Games. Still in the first quarter of its year. fiscal year 2020/2021 ended at the end of August, the group unveiled an organic decrease in turnover of 22.7% to 4.43 billion attributable mainly to the fall in income from services of the business division while the other The smaller benefits and rewards division comprising meal vouchers, holiday vouchers, gift vouchers and others held up much better with a 5.6% drop in billings. For the whole of the first half of the year, the group does not expect much improvement due to an epidemic which is still very active while the vaccines ramp up. The turnover for the first six months is therefore expected to contract by around 20% to 25%. On the other hand, and this is the good news, the effects of the “GET” restructuring plan called for to save 350 million euros from the 2021-2022 financial year should make it possible to externalize a slightly better operating margin. than expected in the first semester. Initially hoped for in a range between 2% and 2.5%, it should ultimately come out at least in the upper limit.
3 times leverage
At 34.4 times the profits for this year, the stock is still expensive but the following year finds multiple discounts of 17.9 and 15.6 times respectively compared to an average ratio of 19.9 times observed over the long term. period (2010-2020). A turbo call issued by BNP-Paribas with no maturity enables leverage to continue to catch up in value towards at least 83 euros. The security threshold of the call is 52.84 euros and should not be reached in the event of a relapse in the action, otherwise the turbo will lose almost all of its value. The product is therefore risky, but the significant difference between the stock price and this safety threshold gives the time necessary to unwind the position in the event of an unfavorable change in the security. Meanwhile, the certificate has an attractive leverage of 3 times. Thus, in the event of a further rise in the stock to 83 euros, the call would appreciate by 27.6%. But conversely, a decline in the share to 69 euros would result in a loss of 27.6% on the turbo.
Our advice: buy a Sodexo turbo call issued by BNP-Paribas (code: FRBNPP01J1V5); term: unlimited; security threshold: 52.84 euros; level of funding: 50.56 euros; parity: 10 certificates for 1 share; price: 2.57 euros; portion: 1.