EDENRED, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Hannes Leitner from Jefferies maintained a Hold rating on the stock and has a €29.00 price target.
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Hannes Leitner has given his Hold rating due to a combination of factors influencing EDENRED’s financial performance. The company showed a modest revenue increase of 6.2% year-over-year in the second quarter, which was slightly below expectations. Despite this, effective cost management led to a significant improvement in EBITDA, which rose by 14% year-over-year.
However, there are concerns regarding the company’s free cash flow, which was negative at €118 million, and an increase in net debt to €2.3 billion. These financial challenges, coupled with stagnating growth in operating revenue, contribute to the cautious outlook. As a result, the Hold rating reflects a balanced view of the company’s strong cost control against its softer growth and cash flow issues.
According to TipRanks, Leitner is a 5-star analyst with an average return of 16.2% and a 66.05% success rate. Leitner covers the Technology sector, focusing on stocks such as Adyen, Wise PLC Class A, and Worldline.
In another report released on July 12, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a €28.00 price target.