Elis shares plummet 16% on reported Vestis acquisition bid By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 06 2024
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Source: Investing.com
Elis Acquisition Attempt: Shares of Elis fell 16% after reports of its acquisition offer for Vestis, valued at $3.3 billion, which is struggling in the market. Analysts see potential growth in the U.S. uniform services sector but also highlight challenges ahead.
Financial Considerations: Financing the acquisition may be difficult for Elis, which recorded €303.6 million in free cash flow for FY23 and has a leverage ratio of 2.0x, with plans to reduce it. Historical leverage trends indicate potential financial strain.
Analyst Views on ELIS
Wall Street analysts forecast ELIS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ELIS is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 17.005
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Current: 17.005
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
