Sodexo downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Sodexo (SDXAY) to Equal Weight from Overweight with a price target of EUR 68, down from EUR 89. Sodexo’s warning “raises as many questions as answers,” says the analyst, who has “much less confidence in its execution” and cut the firm’s EPS estimates 8% and 11%, respectively, for FY25 and FY26.