Edenred: Berenberg maintains 'sell' rating
(CercleFinance.com) - Berenberg maintains its "sell" recommendation on the Edenred share, along with its target price of 33 euros, considering that the share of the prepaid service group is trading at an "exaggerated multiple" given its growth.
The broker estimates that the share is trading at a 2020 P/E of 31.9x, along with a 2020 EV/EBITDA multiple of 23.7x, for average annual EPS growth that is estimated at 10.4% over 2020-2023.
"We think that this is an exaggerated multiple for a company where the majority of the business appears to be growing in the mid - to high single- digits," Berenberg says.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker estimates that the share is trading at a 2020 P/E of 31.9x, along with a 2020 EV/EBITDA multiple of 23.7x, for average annual EPS growth that is estimated at 10.4% over 2020-2023.
"We think that this is an exaggerated multiple for a company where the majority of the business appears to be growing in the mid - to high single- digits," Berenberg says.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.