On Thursday, Berenberg adjusted its outlook on Edenred (EPA::FP) (OTC: EDNMY), a leader in the employee benefits and engagement sector, by lowering its price target to €59 from the previous €67. Despite this change, the firm maintained its Buy rating on the stock.

Edenred has experienced a significant drop in its share price since February 22, 2024, with a roughly 32% decline. This downturn is attributed to negative news and regulatory challenges in the company’s key markets. However, earnings per share (EPS) consensus estimates have shown resilience, with only about an 8% decrease for FY24 and a 6% decrease for FY25.

Berenberg addressed the regulatory concerns that have been affecting Edenred’s market performance. The firm believes that the current stock price already accounts for these regulatory issues, as well as potential economic challenges that could arise from fluctuations in currency and oil prices.

The firm’s stance on Edenred remains positive, emphasizing the company’s dominant position in both the employee benefits and the fleet and mobility markets. Despite the revised price target, Berenberg’s reiteration of a Buy rating suggests confidence in Edenred’s fundamentals and its ability to navigate through the current headwinds.

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