In major news on French stocks, shares of Edenred (FR:EDEN) plunged over 15% yesterday to hit an all-time low of €47.80 on news of an accounting probe into its Italian unit. Reports suggest that Italian prosecutors are investigating Edenred Italia for an alleged fraudulent public tender launched in 2019. The company said that it is cooperating with the officials to provide all necessary information but didn’t divulge any more details as the investigation is underway.
Edenred operates a prepaid corporate meal voucher service in 46 countries. The company also offers prepaid fuel cards and payment and expense management systems.
About the Probe
Four top officials from Edenred’s Italian unit are being probed by prosecutors from the Court of Rome for bid rigging and administrative offenses. Italy’s finance police have also seized assets worth €20 million concerning the case from Edenred Italia.
An official statement from the prosecutors said that they were probing “a leading company operating in the sector of services for public and private companies” for defrauding the state. The tender in question was worth €1.3 billion, and Edenred was awarded €528 million on winning the auction. The probe could lead to hefty fines or even uncover systemic business malpractices across the company.
Is Edenred Stock a Buy, Sell, or Hold?
On TipRanks, EDEN stock has a Strong Buy consensus rating based on three Buys and one Hold rating. But all these ratings were given before the news of the alleged fraud and are subject to change. The Edenred SE share price target of €65.75 implies 32% upside potential from current levels.
