Pluxee Dips Nearly 7% at Opening Following UBS Downgrade
Pluxee falls 6.68% at the opening on Monday, January 26, to 10.90 euros, extending the decline that began on Friday after UBS downgraded it to sell. Uncertainties related to regulatory reform in Brazil continue to weigh heavily on the stock, which has accumulated a loss of more than 51% over the year.
UBS Downgrades Pluxee from Neutral to Sell
UBS downgraded its recommendation on Pluxee from neutral to sell with a price target reduced from 19 to 10 euros this Friday, January 23, triggering a drop of 5.5% to 11.10 euros during the session. The research firm believes that regulatory uncertainty in Brazil remains too significant for the next six to twelve months, with Brazil accounting for about 60 to 65% of the group's revenue. Monday's decline reflects the continuation of this selling momentum, with the stock touching its technical support threshold at 10.90 euros, now a critical level. From a technical perspective, the RSI stands at 28 points, indicating a situation close to extreme overselling, which could favor a technical rebound in the short term. The price is significantly below its key moving averages: 12.98 euros for the MM50 and 16.63 euros for the MM200, confirming a structural bearish trend. The next major resistance is at 13.41 euros, representing a potential upside of 23% from the opening price, while breaking the current support could lead to new historical lows for the stock introduced in February 2024.
Pluxee Reports Revenue Growth Amid Regulatory Challenges
The group posted revenue of 308 million euros in the first quarter of fiscal 2026, marking an organic growth of 9%, confirming its revised annual targets. However, this performance comes after Pluxee had to lower its ambitions last November, following the reform of the Workers' Food Program in Brazil. The group now anticipates stable total revenue against previously expected high growth. Brazilian regulatory measures are expected to continue impacting financial results in the first half of fiscal 2027, with management predicting a return to a sustainable growth trajectory starting from the second half of 2027. Alphavalue lowered its price target from 29.40 euros to 21 euros in mid-January, while Morgan Stanley reduced it from 23 to 21 euros in December. Despite these revisions, the analysts' consensus maintains an average target of 19.17 euros, implying a theoretical upside potential of 76% from current levels, reflecting differing assessments of the group's ability to navigate through the regulatory storm.
