Elior is up over 5% in Paris, as Stifel announced it was maintaining its 'hold' recommendation on the stock, with an adjusted price target of 2.9 to 3.1 euros, following last week's trading update for the catering and services group's first accounting quarter.

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

"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 poor, in our view", he continues.

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