Edenred: Feed back: Long-term sustainable growth
BUY vs. NEUTRAL, Fair Value EUR26 vs. EUR25 (+20%)
Reassuring trends despite the impact of currencies, the 2013 results highlighted the group’s ability to generate strong growth bearing in mind that on a lfl basis Issue Volume increased 11.8%, operating revenue 7.7%, EBIT 10.9% and FFO 11.5%. Long-term perspectives sound good, management revising its medium-term targets with lfl Issue Volume growth of between 8% to 14% (vs. 6% to 14%), a flow-through ratio of over 50% (57% in 2013) and FFO lfl growth per year of over 10%. After limited adjustments, we move our opinion to buy from neutral with a fair value of EUR26.
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