Sodexo: Share Price Reaction to Third-Quarter Revenue Overblown

July 2's share price fall highlights the investor disappointment at Sodexo’s fiscal third-quarter update, but we think the reaction is overblown. The company delivered organic revenue growth of almost 7% over the period, right in the middle of its full-year guidance range. Furthermore, the company confirmed that revenue growth for the full year would be at the top of the range. This is nothing to be sniffed at. We reiterate our EUR 92 fair value estimate for narrow-moat Sodexo and see decent upside from the prevailing share price.