Edenred: Credit Suisse still a buyer
(CercleFinance.com) - Credit Suisse maintains its Outperform rating on Edenred shares, along with its target price of E65.
The broker notes Edenred's announcement of the Reward Gateway acquisition, for which "The upside with the deal lies in the revenue synergies, expected at E50mm over a 5-year timeframe (~50% of CY 2023E RG revenues) could add an additional 2-3% EPS accretion".
For the analyst, the risks "are largely macro (fuel and FX volatility) with ~11% of operating revenues exposed to fuel prices".
"Our E69 target price from (E65) is based ~30x our 2024E EPS, a slight premium to EDEN's one-year historical average".
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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 notes Edenred's announcement of the Reward Gateway acquisition, for which "The upside with the deal lies in the revenue synergies, expected at E50mm over a 5-year timeframe (~50% of CY 2023E RG revenues) could add an additional 2-3% EPS accretion".
For the analyst, the risks "are largely macro (fuel and FX volatility) with ~11% of operating revenues exposed to fuel prices".
"Our E69 target price from (E65) is based ~30x our 2024E EPS, a slight premium to EDEN's one-year historical average".
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.