Edenred: Oddo BHF maintains outperform rating
(CercleFinance.com) - Oddo BHF maintains its "outperform" rating on Edenred share, along with its target price of E70, despite government announcements that have rekindled regulatory risk on commissions paid by restaurant operators in France's meal voucher market.
The impact of a cap on merchant commissions may seem limited at first sight, but this issue has rekindled fears of an unfavourable regulatory trend in the Employee Benefits business, the analyst says.
Nevertheless, he believes that the group's growth momentum and the strength of its business model remain unchanged, despite short-term risk, and that the Group's stockmarket track record bodes well for it.
Oddo BHF points out that its positive appreciation of Edenred is underpinned by high growth prospects linked to the under-penetration of its markets, still significant potential for margin improvement and strong free cash flow generation.
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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.
The impact of a cap on merchant commissions may seem limited at first sight, but this issue has rekindled fears of an unfavourable regulatory trend in the Employee Benefits business, the analyst says.
Nevertheless, he believes that the group's growth momentum and the strength of its business model remain unchanged, despite short-term risk, and that the Group's stockmarket track record bodes well for it.
Oddo BHF points out that its positive appreciation of Edenred is underpinned by high growth prospects linked to the under-penetration of its markets, still significant potential for margin improvement and strong free cash flow generation.
Copyright (c) 2023 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.