Edenred: leading the CAC 40, Jefferies raises its recommendation
(CercleFinance.com) - On Wednesday, Edenred was the biggest riser on the Paris Bourse's CAC 40 index, following an upgrade to 'hold' by analysts at Jefferies.
At 2:00 p.m., the prepaid services specialist gained around 4.2%, while the index of leading French stocks advanced by 0.4% at the same time.
In a research note published this morning, Jefferies' teams felt that the "headwinds" facing the group were now well integrated into the share price.
After a 3rd quarter marked by a slowdown in all business lines and regions, and uninspiring comments concerning Europe (which generates around 60% of sales), we remain cautious about business momentum and see limited upside potential for margins", they explain.
However, given its recent devaluation, we believe that the stock is taking into account these new negative elements, including the risks surrounding a possible change in regulation in Italy and Brazil", emphasizes Jefferies.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
At 2:00 p.m., the prepaid services specialist gained around 4.2%, while the index of leading French stocks advanced by 0.4% at the same time.
In a research note published this morning, Jefferies' teams felt that the "headwinds" facing the group were now well integrated into the share price.
After a 3rd quarter marked by a slowdown in all business lines and regions, and uninspiring comments concerning Europe (which generates around 60% of sales), we remain cautious about business momentum and see limited upside potential for margins", they explain.
However, given its recent devaluation, we believe that the stock is taking into account these new negative elements, including the risks surrounding a possible change in regulation in Italy and Brazil", emphasizes Jefferies.
Copyright (c) 2024 CercleFinance.com. All rights reserved.