Analyst Ed Young from Morgan Stanley maintained a Hold rating on PLUXEE N.V. and keeping the price target at €23.00.
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Ed Young’s rating is based on a combination of factors that reflect both positive performance and cautious outlook for PLUXEE N.V. The company’s Q3 results slightly exceeded expectations with a total revenue of €310 million, showing a year-over-year increase of 4.3%. This growth was driven by strong new client acquisition and solid net client retention rates. Additionally, the company is making strategic acquisitions, such as My Benefits in Romania, which are expected to be EBITDA margin accretive in the future.
However, despite these positive indicators, Ed Young maintains a Hold rating due to the company’s maintained guidance for future growth, which suggests a steady but not exceptional trajectory. The guidance indicates low-double-digit organic revenue growth and a modest increase in EBITDA margin, which aligns with the current market valuation. Furthermore, the company’s shares are trading at a price-to-earnings ratio that suggests a balanced risk-reward profile, leading to the decision to rate the stock as Hold.
According to TipRanks, Young is a 4-star analyst with an average return of 13.8% and a 58.16% success rate. Young covers the Consumer Cyclical sector, focusing on stocks such as Flutter Entertainment PLC, Trainline, and La Francaise des Jeux SA.
In another report released today, Jefferies also maintained a Hold rating on the stock with a €20.40 price target.