AlphaValue announced on Monday that it had reduced its target price for Orpea shares from 0.19 to 0.18 euros, following the downward revision of the group's targets announced last week.

In a research note, the research firm fears a "complicated" turnaround following the resounding scandal surrounding the methods used by the specialist in accommodation for the dependent elderly.

Last week, the group announced that it had lowered its operating performance targets for 2023, citing insufficient occupancy rates in a "still difficult" reputational context, as well as higher staff costs, a factor it explained as part of its drive to improve support and care for its residents.

In view of this gloomy outlook, AlphaValue is maintaining its negative opinion on the stock, i.e. a sell recommendation, saying that it anticipates efforts to be much more intense than initially expected.

The only small reason for relief according to the research cabiner is that operating performance could be slightly bolstered by positive non-recurring tax items, as well as by a reduction in capital expenditure.

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