Edenred: Morgan Stanley raises its recommendation

(CercleFinance.com) - Morgan Stanley on Thursday upgraded its recommendation on Edenred from 'in-line weighted' to 'overweight', with a price target reduced from 55 to 51 euros.


In a sector study, the analyst highlights the French group's resilient business model and solid growth opportunities, which he believes more than compensate for the uncertainty associated with regulatory developments.

He also underpins his optimism with the prospect of the prepaid services specialist redistributing almost 40% of its market capitalization to its shareholders by 2026, between dividends and share buybacks.

After losing 31% this year, Edenred - which is valued at 9.4 billion euros on the stock market - is paying 15 times its expected earnings for the next twelve months (PER), compared with an average of 26 times over the last ten years, notes the intermediary.

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