On Wednesday, JPMorgan adjusted its stance on Pluxee France SA (PLX:FP), downgrading the stock from Overweight to Neutral and revising the price target downwards to €28 from the previous €28. The change in rating comes as the firm places the shares on negative Catalyst Watch in anticipation of the company's full-year 2024 results, expected on October 31.
The downgrade was influenced by a series of factors including regulatory concerns in key markets and a subdued third-quarter trading update. Since the third-quarter results in July, Pluxee's shares have experienced a decline of about 25%, contrasting with the STOXX Europe Travel & Leisure sector, which has remained relatively stable.
JPMorgan's analysts have expressed concerns over the company's future, noting that the guidance for fiscal years 2025-2026 seems overly optimistic. Despite this, the firm does not consider the stock to be underweight, citing its reasonable valuation at approximately 8.5 times its forecasted EV/EBITDA for fiscal year 2025.
The revised price target of €28 is based on lowered estimates and target multiples. This adjustment reflects a more cautious outlook for Pluxee France SA as the company navigates through a challenging period marked by regulatory scrutiny and less favorable market conditions. Investors are now watching closely as the end of October approaches, when the company is set to release its full-year financial results.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.