Jefferies ups Edenred to 'hold' as rising headwinds are priced in
** Jefferies ups Edenred EDEN.PA to "hold" from "underperform" saying further negative news flow, including potential regulation changes in Italy and Brazil, is priced in the French vouchers group's shares
** The broker says it remains cautious, citing the company's slowing topline dynamics and limited margin expansion potential
** It expects LFL growth in Q4 to further decelerate driven by unchanged macro dynamics in key region Europe, which accounts for about 60% of revenue
** Jefferies says its forecast includes EUR 120 mln run-rate EBITDA headwinds from second half of 2025, indicated by Edenred, and related to potential introduction of 5% cap on merchant fees in Italy
** It cuts PT by 10% to EUR 25.6 saying Edenred shares have de-rated since its peak valuation in mid-2023 and currently the valuation is at five-year-low
** Among the 19 analysts covering the stock, 13 rate it "strong buy" or "buy", four "hold" and two "sell"
Reporting by Hugo Lhomedet
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