While maintaining its 'hold' recommendation on Sodexo, Stifel has adjusted its price target from 100 to 98 euros, ahead of the service group's publication of its annual results, scheduled for next Thursday.

The broker continues to distance itself from the consensus's positive stance on the stock, believing that "the excitement surrounding the Pluxee demerger seems exaggerated" and retaining a structural concern about on-site services.

Stifel points out that its cautious view "is offset by a relatively undemanding valuation, leaving only limited absolute downside potential" for the stock. Nevertheless, he continues to prefer Compass and Edenred within the sector.

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