(News Bulletin 247) – Stifel retains its Buy rating and its target price of 62E on the Edenred share.
The acquisition of Reward Gateway announced today by Edenred ‘should generate additional revenue of around 6% at group level, with an accretive impact on the group’s profitability’, underlines the analyst.
The EV/EBITDA of around 20x (after synergies) seems ‘demanding’ but is justified, according to Stifel, ‘by the strong growth profile, the strong profitability and the cash-generating profile’.
‘The company expects the transaction to have an accretive effect on the group’s earnings per share from 2024’, continues the analyst for whom the accretive impact on the group’s earnings before synergies in 2024 will be ‘low to medium high.
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