Analyst Hannes Leitner of Jefferies maintained a Hold rating on EDENRED, retaining the price target of €22.20.
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Hannes Leitner’s rating is based on a combination of factors that reflect both positive and cautious elements in Edenred’s recent performance. The company’s Q3 operating revenue showed an 8% year-over-year growth on a like-for-like basis, which was slightly above the company consensus and aligned with Jefferies’ expectations. This growth was primarily driven by strong performance in the Mobility and Benefits & Expense segments, which saw increases of 14% and 9% respectively. However, the Complementary Solutions segment experienced a decline of 7%, indicating some areas of concern.
Despite the overall positive revenue growth, the confirmation of guidance for more than 10% like-for-like EBITDA growth suggests that the company is maintaining a conservative outlook. Additionally, the recent weakness in share price may have influenced the Hold rating, as it suggests potential for short-term volatility. While the upgrade in Other Revenue to over €220 million is a positive sign, the mixed performance across different segments and the cautious guidance confirmation likely led to the decision to maintain a Hold rating.