Oddo BHF maintains its 'outperform' rating on Edenred, but has lowered its target price from €62 to €56, in the wake of a reduction in its estimates for the group following the heavily punished first-half results.

Its positive fundamental view of the stock remains unchanged, however, underpinned by high growth prospects, still significant margin improvement potential and strong free cash flow generation at €900 million per annum.

Oddo BHF also notes that Edenred's valuation has corrected very sharply since October 2023, and at 15 times PE 2025, suggests a 40% discount to its average over the last eight years and a 20% premium to Pluxee, which 'seems reasonable'.

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