Pluxee Shares Surge Midday Despite Brazilian Regulatory Challenges
On Wednesday midday, Pluxee shares rebounded by 6.6% to 11.95 euros, after a 46% decline over the past year. The employee benefits specialist confirmed its revised annual targets early January, amidst the reform of Brazil's Worker's Food Program. Operational revenue reached 268 million euros during the period, slightly above analyst expectations of 267 million euros. Despite this reassuring quarterly progress, Brazilian regulatory uncertainties continue to heavily impact the group's outlook.
Technical Indicators Suggest a Bearish Environment
Technical indicators outline a marked bearish environment for Pluxee. The Relative Strength Index (RSI) at 18 points indicates an extreme oversold condition, suggesting short-term seller exhaustion and a potential technical rebound, as reflected in today's rise. The stock price is significantly below its key moving averages: 12.53 euros for the MM20, 13.22 euros for the MM50, and 16.74 euros for the MM200, confirming a bearish trend across all time horizons. Volatility remains moderate at 8.17% over a month, while a beta of 0.06 shows a significant decoupling from the Paris market. However, the stock has crossed its major support threshold at 11.21 euros today, potentially paving the way towards resistance at 13.49 euros, a level corresponding to recent highs. The Chaikin Money Flow (CMF) at -0.28, however, reveals persistent capital outflows, limiting the scope of the observed bullish movement during the session.
Brazilian Government Reforms Impact Pluxee's Outlook
In November, the Brazilian government signed a text amending the 'PAT', the worker's food program, which governs the rules for food and meal vouchers in Brazil. As a result of this reform, Pluxee was forced to lower its ambitions for fiscal year 2026, now anticipating stable revenue instead of the previously expected high growth. Analysis firms have adjusted their positions: 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 with a recommendation to align with the market. These targets still imply a substantial upside potential compared to the current price. The group warns that the regulatory measures announced in Brazil will continue to impact financial results in the first half of fiscal year 2027. It anticipates a return to a 'sustainable and profitable' growth trajectory starting from the second half of the 2026-2027 fiscal year. The quarter was marked by the execution of its external growth strategy, with the completion of acquisitions of Skipr in Belgium and France, and ProEves in India.
