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Pluxee stock faces pressure with FX risks and regulatory uncertainty – Barclays

EditorEmilio Ghigini
Published 12/09/2024, 11:08
PLVP
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On Thursday, Barclays (LON:BARC) made an adjustment to the price target of Pluxee France SA (PLX:FP), reducing it to €26.00 from the previous €28.00. The firm maintained its Equalweight rating on the stock. The adjustment comes ahead of the company's full-year results expected on October 31. Barclays anticipates that the results will not deviate significantly from current forecasts.


Despite the challenging first half comparisons and recent Brazilian Real (BRL) depreciation, Barclays projects that a confirmation of the company's Double-Digit (DD) operating Online Sales Growth (OSG) and consensus EBITDA for the next year will be well-received. The firm's expectations for Pluxee's FY25 guidance include around 11% operating OSG, year-over-year stability in float revenue, and an approximate 36% group EBITDA margin.


Barclays also forecasts a level of caution from Pluxee regarding foreign exchange risks, particularly due to the recent BRL devaluation and hyperinflation in Turkey. Nonetheless, the firm anticipates that Pluxee's management will maintain confidence in reaching mid-term targets, which include DD group OSG and around a 37% EBITDA margin by FY26.


In the context of the voucher sector, Barclays expresses a preference for EDEN, citing its valuation as attractive, with shares trading at roughly a 30% discount to their pre-Covid average. However, the firm notes that the potential for regulatory changes in France, Italy, and other regions could continue to cast uncertainty over the financial landscape for voucher companies, potentially causing investor anxiety in the short term.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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