Edenred: Oddo BHF still a buyer
(CercleFinance.com) - Oddo BHF maintains its Outperform rating on Edenred shares, along with its target price of E64.
5.
The analyst said that Reward Gateway seems to be a good target in a fast-growing business and Edenred has a solid track record in mergers and acquisitions and integration.
Nevertheless, an EV/EBITDA multiple of 20x post-synergy paid for the acquisition seems quite high, given the accretion analysts calculate, Oddo BHF says.
The broker's rating is driven by sound growth prospects, a margin expansion that is still significant and strong FCF generation (cash conversion ratio of >70%), the broker adds.
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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.
5.
The analyst said that Reward Gateway seems to be a good target in a fast-growing business and Edenred has a solid track record in mergers and acquisitions and integration.
Nevertheless, an EV/EBITDA multiple of 20x post-synergy paid for the acquisition seems quite high, given the accretion analysts calculate, Oddo BHF says.
The broker's rating is driven by sound growth prospects, a margin expansion that is still significant and strong FCF generation (cash conversion ratio of >70%), the broker adds.
Copyright (c) 2023 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.