Jefferies analyst Hannes Leitner has maintained their neutral stance on 0MUM stock, giving a Hold rating on October 31.
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Hannes Leitner has given his Hold rating due to a combination of factors related to Edenred’s financial performance and strategic outlook. The company has demonstrated impressive growth in its EBITDA, surpassing its core target of over 12% LFL growth. However, this achievement has been accompanied by a significant increase in debt, with interest expenses exceeding €300 million and a gross debt surpassing €5 billion.
Given these financial pressures, Leitner anticipates that Edenred will adjust its future ambitions, likely lowering its targets to focus more on efficiency and cash generation. Despite some positive factors, these financial constraints and strategic shifts contribute to the Hold rating, as the company balances growth with financial stability.
In another report released on October 31, Citi also maintained a Hold rating on the stock with a €28.00 price target.
Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of 0MUM in relation to earlier this year.