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Bet on Edenred with a turbo call

This former Accor subsidiary specializing in restaurant vouchers and other employee benefits has diversified remarkably well into payment solutions for companies. The title is expensive but the premium is justified by the visibility. A turbo call allows you to position yourself on the backrest with the lever.

This former subsidiary of restaurant vouchers of Accor is now worth much more on the stock market than its parent company with a market capitalization of 11.4 billion (against 7.6 billion for Accor). So it is true that the hotel group is weakened by the crisis with a large part of its rooms closed due to confinement, but Edenred has been able to develop its business model in a remarkable way to become today a true payment platform dedicated to the world. of the company, whether through employee benefits (restaurant vouchers, holiday vouchers, gift vouchers), payment solutions for employees (toll cards, gas cards) or to operate inter-company transactions. Present in 46 countries located on the continents of Europe and South America, the group has digitized more than 86% of its offers, enabling it to reduce costs and improve profitability. Hardly spared in the spring by the shutdown of the global economy, the group pleasantly surprised the markets by managing from the third quarter to resume organic growth of 0.9% of its turnover. Less severe, the second confinement that took place at the end of last year should not have an impact on the objectives of the last financial year confirmed at the end of October between 550 and 600 million for the gross operating surplus (against 668 million in 2019) due to the 100 Million Savings program. Even if the first part of 2021 promises to remain complicated, the ramp-up of vaccination campaigns should allow Edenred to gradually regain high visibility on its growth prospects for its various financial indicators.

Leverage in both directions

Assumptions already well valued at 40.5 and 34.2 times the estimated profits for 2020 and 2021 but the premium seems to us to be justified by the quality of the file. We therefore propose to play it with leverage by means of a turbo call issued by BNP-Paribas with no maturity and a safety threshold of 37.31 euros below which the share must not fall. Otherwise, the turbo will lose almost all of its value. The certificate is therefore risky even if the significant difference between the share price and the security threshold of the call offers the time necessary for the unwinding of the position in the event of an unfavorable evolution of the security. Meanwhile, the turbo has an attractive leverage of 4.69 times. Thus in the event of an increase in the share to 50 euros for example, the turbo will appreciate by 37.5%. But be careful because conversely, it would lose 40% if the title ebbed to 42 euros.

Our advice: buy an Edenred turbo call issued by BNP-Paribas (code: FRBNPP01OIK2); maturity: unlimited, level of funding: 36.22 euros; security threshold: 37.31 euros, parity: 5 calls for 1 share; amount: 1

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