Oddo BHF is maintaining its 'outperform' recommendation on Edenred, but has lowered its target price from €70 to €62, following a cut in its estimates and an increase in its WACC (weighted average cost of capital).

explains that it is taking into account a higher risk premium in the current context marked by regulatory and legal issues, but points to a valuation at 22.2 times PE 2024, suggesting a 16% discount to its average over the last seven years.

The research firm maintains a positive stance, underpinned by high growth prospects, still significant margin improvement potential supported by the digitalization of solutions and operating leverage, and strong FCF generation.

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