Deutsche Bank raised its target price for Edenred on Thursday from €67 to €68, seeing continued upside potential in the stock despite the French group's slowing growth.
The German bank, which is maintaining its buy recommendation on the stock, says it expects the prepaid services specialist to report half-year sales up 23.7% to €1.14 billion on July 25.
With regard to Ebitda, DB expects first-half earnings of €470 million, above the consensus target of €464 million.
In terms of debt, Edenred should see its debt rise to 1.2 billion euros at the end of June, compared with 307 million euros at the end of 2022, due to the acquisition of Reward Gateway, adds the German establishment.
In terms of outlook, while Edenred has set itself the target of increasing its like-for-like Ebitda by more than 12% over the medium term, the consensus is for growth this year of between 17.5% and 25.5%, emphasizes Deutsche Bank.
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Edenred SE is a leading digital services and payments platform and the everyday companion for people at work, connecting over 60 million employees and more than 2 million partner merchants in 45 countries via nearly 1 million corporate clients.
Edenred SE offers specific-purpose payment solutions for food (meal benefits), incentives (gift cards, employee engagement platforms), mobility (multi-energy, maintenance, toll, parking and commuter solutions) and corporate payments (virtual cards). These solutions enhance employee well-being and purchasing power, improve companies' attractiveness and efficiency, and vitalize the employment market and the local economy.
EDENRED SE 
