Oddo BHF has reaffirmed its 'outperform' rating and €70 price target on Edenred, despite government announcements that have rekindled the regulatory risk of commissions paid by restaurant operators in France's meal voucher market.

"The impact of a cap on merchant commissions may seem limited at first glance, but this issue has rekindled fears of adverse regulatory developments in the Employee Benefits business", the analyst acknowledges.

Nevertheless, the group's growth momentum and the strength of its business model remain unchanged in our view, despite the short-term risk, and the group's stock market track record plays in its favor', he nevertheless judges.

Oddo BHF specifies that its positive opinion on Edenred is underpinned by high growth prospects linked to the under-penetration of its markets, still significant margin improvement potential and strong free cash flow generation.

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