EdenRed’s share price came under pressure yesterday (closed -11%), after the French Small and Medium Enterprise (SME) minister announced the possibility of capping the commission paid by restaurants to meal voucher providers. While it is not a good news for EdenRed, which sources c.16% of its revenue from France, the share price reaction could be overdone as the cap represents a low-mid single-digit headwind to the group’s top line. We retain our cautious stance.
