Edenred & Pluxee: Regulatory reset priced in; prefer Edenred diversification

Research evidence excerpt

Edenred & Pluxee: Regulatory reset priced in; prefer Edenred diversification

Foundation

July 15, 2026 03:00 AM GMT

Morgan Stanley & Co. International plc+MEdenred & Pluxee | Europe Zachariah Al-Qaryooti

Equity Analyst

Regulatory reset priced in; Zach.Al-Qaryooti@morganstanley.comAnnelies Vermeulen +44 20 7425-2400

Annelies.Vermeulen@morganstanley.com +44 20 7425-4367

prefer Edenred diversification Remi Grenu

Remi.Grenu@morganstanley.com +44 20 7425-0552

Rather than structurally broken business models, we see a

Business Services

rebased, cash-generative subsector where Edenred offers the Europe

cleaner recovery. Industry View Attractive

What’s Changed

Investors are too focused on the regulatory risk, which is priced in … When

Edenred SA (EDEN.PA) From To

assigning no value to Meal & Food, the remainder of the businesses trades at 8x/13x Price Target €33.00 €34.00

EV/EBIT at Pluxee/Edenred respectively, implying severe regulatory outcomes are

Pluxee N.V. (PLX.PA) From To

priced into both stocks. France is the only remaining market large enough to cause Price Target €21.00 €15.50

meaningful financial impact, but here we observe merchant fees in-line with norms,

With this report, Zach Al-Qaryooti assumes

de-risking the likelihood and potential financial impact of fee caps. Our base case

primary coverage of Edenred and Pluxee.

assumes no fee cap in France, regular course of business in Italy once the comp is

lapped, and a more intense competitive environment in Brazil.

… and the market (wrongly) assumes B&E is structurally ex-growth. The market

is more focused on merchant fees than the offsetting levers such as SME

underpenetration (<10%), face value increases (+25% in Italy and Belgium),

accelerated cross-selling, and a potentially higher rate environment supporting float