Stifel initiates Pluxee at 'hold' on improving growth profile, though work is needed
16/01/2025 07:24
** Stifel initiates French employee benefit services firm Pluxee
PLX.PA with a "hold" rating and a PT of 25.00 euros, citing
improving growth profile, but seeing limited room for positive
revisions
** While it sees last year's spin-off from Sodexo EXHO.PA
as "highly positive" for Pluxee, the brokerage says work is
needed to improve the firm's portfolio, with preparation for
"resilient" fast growth
** Stifel highlights Pluxee's prominence as one of the
largest companies in the employee benefits sector and a strong
player in key countries, which should enable it to out-invest
competitors when it comes to technology and capabilities
** But the analysts underline that Brazil, accounting for
28% of Pluxee's total revenue, presents significant threats such
as currency, competition and regulation risks, despite also
offering plenty of opportunities
** Stifel sees low-teens EPS over the next three years, as
it expects the operating revenue momentum to remain solid,
benefiting from growing volumes, investments and rising market
penetration
(Reporting by Mateusz Rabiega)
((Mateusz.rabiega@thomsonreuters.com;))