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On Wednesday, Kepler Cheuvreux analysts downgraded Derichebourg SA (EPA:DBG:FP) stock rating from Buy to Hold. The decision comes as the firm adjusts its price target to €6.50 from the previous €7.00.
The analysts cited limited upside potential for Derichebourg, primarily due to Elior (EPA:ELIOR)’s anticipated recovery, as a reason for the downgrade. They also noted concerns regarding Derichebourg’s fiscal year 2025 EBITDA guidance.
Kepler Cheuvreux’s revised price target reflects a 7% reduction in their target price for Elior, bringing it to €4.30. The analysts also highlighted an increase in the weighted average cost of capital (WACC) for Derichebourg, moving from 9.02% to 9.25%.
The adjustment in WACC is attributed to macroeconomic risks, which could impact Derichebourg’s fiscal year 2025 guidance.
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