tiprankstipranks
Ratings

Edenred: Stability Amid Mixed Financial Performance Justifies Hold Rating

Edenred: Stability Amid Mixed Financial Performance Justifies Hold Rating

Analyst Hannes Leitner of Jefferies maintained a Hold rating on EDENRED (0MUMResearch Report), retaining the price target of €29.80.

Discover the Best Stocks and Maximize Your Portfolio:

Hannes Leitner has given his Hold rating due to a combination of factors, including Edenred’s recent financial performance and future growth expectations. The company’s Q4 total revenue showed a modest growth, slightly beating company expectations, but the operating revenue growth was below consensus estimates. This indicates some potential for growth, but not enough to significantly raise expectations.
Additionally, while EBITDA has shown a healthy increase and the company has confirmed its ambition for over 10% EBITDA growth by 2025, the growth in operating revenue ex-hyperinflation has slowed down. This mixed financial performance, with strong EBITDA but slower revenue growth, suggests that while Edenred is stable, it may not outperform market expectations significantly in the near term, justifying the Hold rating.

According to TipRanks, Leitner is a 5-star analyst with an average return of 14.3% and a 61.54% success rate.

1