On Tuesday, Deutsche Bank (ETR:DBKGn) adjusted its price target on shares of Edenred (EPA:EDEN:FP) (OTC: EDNMY), a global provider of payment solutions for the working world, from EUR688.00 to EUR66.00. Despite the significant decrease in the price target, the firm has maintained a Buy rating on the stock.
The revision follows recent interactions with Edenred's Chief Financial Officer and Investor Relations team at a Consumer Conference held last week. During the conference, the company's representatives confirmed that operating trends remain very positive. They also discussed the anticipated regulatory changes in France regarding lunch vouchers, which are expected to be beneficial for the company.
Edenred's team indicated that the French government was slated to announce the new lunch voucher regulations within a month, with the legislative process involving a vote in Parliament scheduled for September or October.
However, upcoming elections on June 30 and July 7 have introduced a degree of political uncertainty. Despite no expected fundamental shift in the government's stance on lunch vouchers, this uncertainty has contributed to a more negative short-term perception of Edenred's shares.
The revised price target reflects these short-term market perceptions amidst the political backdrop, even as the long-term outlook for Edenred remains positive according to Deutsche Bank's assessment.
Edenred is known for its diverse range of services including employee benefits, fleet and mobility solutions, and corporate payment services, with a strong presence in both established and emerging markets.
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