On Wednesday, CFRA made an adjustment to the price target of Edenred (EPA:EDEN:FP) (OTC: EDNMY), lowering it to €55.00 from the previous €60.00, while retaining a Buy rating on the stock. The reduction reflects a new 12-month target based on a price-to-earnings (P/E) ratio of 24.7 times for the year 2024, which aligns closely with the company's three-year historical average forward P/E.
The firm's decision comes after reviewing Edenred's performance, noting a significant 17% like-for-like (LFL) increase in operating revenue for 2023. This growth was particularly strong in the fourth quarter, where the company experienced a 15% acceleration, credited to strong sales in all business divisions. The Beyond Food and Beyond Fuel solutions were highlighted as key drivers of this success.
Looking at EBITDA, Edenred reported a 34% LFL increase, amounting to €1.09 billion, which was at the higher end of the company's projected range. The firm also proposed a dividend of €1.10 per share, marking a 10% year-over-year increase, and reaffirmed its EBITDA growth target of more than 12% LFL for 2024, consistent with its goals set for the 2022-2025 period.
CFRA's outlook for Edenred remains optimistic, with expectations that the company's robust growth will persist across all regions and business lines, thereby continuing to propel earnings growth into 2024.
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