Halister News

(Bloomberg) -- Elis cut to hold from buy at Deutsche Bank; sees M&A upside potential, cautious on French trends.

• Likes business model, notes French tourism weaker than expected, economy unsupportive
• Elis has identified further M&A; likely to be part-equity financed given M&A growth has come at expense of higher leverage
• Cuts estimates for 2016 Ebitda by 0.8%, EPS by 2.2%; 2017 estimates cut by 1.9% and 4.3% respectively
• Estimates organic growth ex. small M&A of 2.1% in 2016, 1.8% in 2017

DATA

• Elis falls as much as 5.6%, volume is 63% of 3-month average
• Stock has fallen 6.5% month-to-date vs a 2% fall in the Stoxx 600 Industrial Goods and Services index; is down 3.2% YTD vs a 1.6% rise in the SXNP index
• Trades on 13.5x next year’s earnings vs 15.7x for the SXNP index according to Bloomberg data