On Wednesday, Deutsche Bank initiated coverage of Pluxee shares with a Buy recommendation and a price target of 34.3 euros, praising the profitable growth and solid cash flow posted by the former Sodexo subsidiary.

In a research note, the analyst stresses that the service voucher business remains a "very specific" market, whose origins date back to the 1950s in England, when London decided to distribute food vouchers combined with tax relief for companies and their employees.

Today present in 31 countries, Pluxee boasts some 36 million consumers, over 500,000 customers and 1.7 million partner retailers, according to the intermediary.

While the company has so far expanded through both organic and external growth, Deutsche Bank stresses that it has no immediate plans to enter new countries, but points out that the company has considerable room for maneuver in its existing markets, where the penetration rate generally does not exceed 25%.

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