EDENRED (0MUM – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Hannes Leitner from Jefferies maintained a Sell rating on the stock and has a €31.80 price target.
Hannes Leitner has given his Sell rating due to a combination of factors including Edenred’s underperformance in their recent financial results. The company’s Q3 total revenue growth fell short of market expectations, showing a mere 11.5% year-over-year increase on a like-for-like basis, which was 2% below the consensus despite being in line with Jefferies’ estimates. This underwhelming performance was observed across all operational segments, although it was somewhat cushioned by revenues from other sources.
Moreover, the forecast for the upcoming quarters indicates uncertainty, with a wide potential range for EBITDA growth and a significant slowdown in like-for-like growth, projected to be as low as -2% in Q4. This discrepancy between Edenred’s actual performance and market expectations, coupled with a cautious outlook for the near future, likely influenced Leitner’s decision to recommend selling the stock.
According to TipRanks, Leitner is a 4-star analyst with an average return of 13.8% and a 59.06% success rate.
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EDENRED (0MUM) Company Description:
Edenred is a France-listed prepaid corporate services provider operating in 46 countries. The company was listed in 2010 following a spin-off from hotel group Accor. Edenred’s main business, Ticket Restaurant, offers prepaid meal vouchers that employers provide to their employees as an additional benefit. The company is also involved in other areas such as prepaid fuel cards and payment and expense-management systems.
