Pluxee: continues sliding as Goldman Sachs now a seller

(CercleFinance.com) - Pluxee shares were the sharpest faller in the SBF 120 index on the Paris Bourse on Monday, the victim of a rating downgrade from Goldman Sachs.


At 2pm, shares in the group specialising in employee benefits were down almost 5%, while the SBF as off just -0.3%.

In a note devoted to French prepaid services players, Goldman says that it has switched to a sell rating on Pluxee shares, now preferring Edenred, which it still rates buy.

The US broker explains that it advocates a more "selective" approach to the sector after the recent fall in both shares, which it justifies by regulatory concerns, slowing growth and falling interest rates.

In its opinion, Pluxee has been one of the major beneficiaries of rising inflation and high interest rates, both of which are set to fade after significantly contributing to its growth.

The broker, which believes that consensus forecasts for 2025 and 2026 may still be over-ambitious, has therefore slashed its 12-month target price from E30.5 to E18.

In Paris, Pluxee shares have fallen by over 33% over the past six months.

Meanwhile, Edenred, has lost just under 3% today, bringing its losses over the past six months to over 25%.


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