Edenred: Oddo raises target price

(CercleFinance.com) - Oddo BHF reinstates its its "outperform" rating on the shares of corporate services and meal voucher group Edenred, having increased its target price for them from 52 euros to 55 euros (current price: 50.
5 euros, +0.4%), saying that it remains positive and confident about Edenred's growth momentum, with the group having been able to diversify its businesses and geographic exposure

As the next factors that could boost the stock, the broker has pinpointed an increase in EBITDA guidance, as well as M&A, with firepower of one or even 1.5 billion euros, which represents potential 2022 EPS growth of between 6% and 11%.

Although a specialised payment player, Edenred's current valuation suggests a 2022 EV/EBITDA multiple of 21x, in line with generalist payment groups, despite having a slightly higher organic growth outlook, analysts add.


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