Stifel maintains its 'hold' recommendation on Elior, with an adjusted target price of €2.9 to €3.1, following last week's trading update for the catering and services group's first accounting quarter.

"The share was under pressure after this weak publication on renewed concerns about cash consumption, and we see few catalysts for a rebound in the stock", the broker believes.

Although the planned acquisition of DMS tends to reassure with regard to the financial situation, it will not address some of the structural issues, and visibility on implementation remains low, in our opinion', he continues.

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