(News Bulletin 247) – Stifel confirms its buy advice on value ‘as we see potential for double-digit organic earnings growth, supported by the strength of the business’.
The analysis office raised its price target to E62 (vs. E56) reflecting stronger growth in turnover and generation of FCF (excluding any impact of a potential agreement with DKV).
“We are looking at M&A opportunities with particular attention to DKV Mobility, the European leader in fuel cards, which has been seen as a potential target by investors,” the analyst said.
‘Although we have no visibility on a potential transaction, we believe that an acquisition of DKV could be a game-changer’.
“We would welcome a possible acquisition of DKV by Edenred, as it would support market consolidation and constitute a major step in the development of the company,” adds Stifel.
The analyst estimates that such an operation could increase Edenred’s turnover by around 30%, while strengthening its operational profile.
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