Corrected: BUZZ-J.P. Morgan cuts price target for Pluxee, citing valuation change
02/12/2025 10:22
Corrects headline to specify reason for PT cut ** J.P. Morgan cuts its price target on French meal voucher and employee benefits group Pluxee PLX.PA by c.21% to 18 euros from 23 euros, citing valuation change ** J.P. Morgan, which keeps a 'neutral' rating, says it now adds a 30% discount to its equity valuation to account for an expected earnings cut triggered by new regulation in Brazil ** The broker also cites "overall uncertainty with contagion risk (still) an overhang on the space" for its valuation change ** JPM says the meal vouchers space remains a challenging one due to regulation, with the shares of companies in the sector unlikely to recover quickly ** It adds Pluxee has "higher exposure to Brazil" and is more exposed to meal vouchers (60% of operating revenue) than peer Edenred EDEN.PA (40% of operating revenue) ** Shares drop 2.2% at 10:02 GMT (Reporting by Dimitri Rhodes) ((Dimitri.Rhodes@thomsonreuters.com;))