EDENRED, the Services sector company, was revisited by a Wall Street analyst on September 25. Analyst Hannes Leitner from Jefferies maintained a Hold rating on the stock and has a €22.20 price target.
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Hannes Leitner has given his Hold rating due to a combination of factors influencing EDENRED’s performance. The company’s growth in Latin America is expected to outpace that in Europe, with the Mobility segment driving this growth. However, the positive impact of these trends is somewhat offset by the beginning of commission headwinds in Italy.
Moreover, Leitner anticipates no significant catalysts in the upcoming Q3 results, especially with the challenging macroeconomic environment and ongoing regulatory risks. The upcoming Capital Markets Day (CMD) is also a factor, as it may not provide enough immediate positive news to change the current outlook. These elements collectively contribute to the Hold rating, reflecting a cautious stance amid uncertain conditions.
According to TipRanks, Leitner is a 5-star analyst with an average return of 16.1% and a 63.31% success rate. Leitner covers the Technology sector, focusing on stocks such as Adyen, Wise PLC Class A, and Worldline.
In another report released on September 16, Bernstein also downgraded the stock to a Hold with a €24.50 price target.