Analyst Hannes Leitner of Jefferies reiterated a Hold rating on EDENRED, retaining the price target of €29.00.
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Hannes Leitner has given his Hold rating due to a combination of factors surrounding Edenred’s financial outlook and market conditions. The upcoming H1 results are anticipated to align with expectations, with the company on track to meet its EBITDA guidance of a 10% increase on a like-for-like basis. However, the outlook for the second half of the year is crucial, as challenges such as the Italian commission cap are expected to impact performance.
Additionally, despite the absence of significant growth in core Business & Employee and Mobility segments when adjusted for foreign exchange, the broader economic environment suggests limited acceleration. As a result, effective cost management will be essential for Edenred to navigate these challenges, leading to a cautious Hold rating from Leitner.
Leitner covers the Technology sector, focusing on stocks such as Wise PLC Class A, Worldline, and Adyen. According to TipRanks, Leitner has an average return of 16.3% and a 67.08% success rate on recommended stocks.