Edenred: Oddo downgrades 'buy' rating
(CercleFinance.com) - In a report issued on Monday morning, Oddo has downgraded its "buy" rating on the Edenred stock to "neutral," but has nudged up target price from 29 euros to 31 euros.
After a roadshow organised by the inventor of the “ticket restaurant,” the broker stresses that the Edenred's business model remains "solid over the long term," but judges its momentum "more limited in the short term".
Furthermore, operating targets also seem cautious, with organic sales growth of over 7% and operating EBIT up over 9% in in 2018, compared with +8.8% and +13.4%, respectively expected by Oddo. In addition, the broker has raised its EPS estimates for 2018 and 2019 by respectively 2.5% and 5%.
The analyst also welcomes a solid financial structure and significant potential for M&A deals.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
After a roadshow organised by the inventor of the “ticket restaurant,” the broker stresses that the Edenred's business model remains "solid over the long term," but judges its momentum "more limited in the short term".
Furthermore, operating targets also seem cautious, with organic sales growth of over 7% and operating EBIT up over 9% in in 2018, compared with +8.8% and +13.4%, respectively expected by Oddo. In addition, the broker has raised its EPS estimates for 2018 and 2019 by respectively 2.5% and 5%.
The analyst also welcomes a solid financial structure and significant potential for M&A deals.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.