Sodexo

SW: XPAR (FRA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	€22.00	Kyjnbc	Hqvkqbmqy

Sodexo: Not Cooling Down Yet

Michael Field

Jun 30, 2023

The negative share price reaction on June 30 belies another strong update from narrow-moat Sodexo. Organic revenue growth came in above 10%, despite year-over-year comparables becoming tougher. The full-year outlook was also confirmed, which if achieved, means the recovery from the coronavirus pandemic is complete. We reiterate our EUR 118 fair value estimate and believe the shares offer plenty of upside potential from here.

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