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Investing.com -- Pluxee’s (EPA:PLX) outlook weakened after Brazil introduced new rules for the country’s lunch-voucher market, leading Deutsche Bank Research to downgrade the stock to “hold” from “buy” and cut its price target to €23 from €33.
The downgrade follows a decree signed two days earlier by Brazilian President Luiz Inácio Lula da Silva that limits reimbursement commissions to 3.6% and shortens the reimbursement window from 30 days to a maximum of 15 days.
The decree also refers to interoperability, though Deutsche Bank Research analyst Andre Juillard said that element remains unclear. Brazil represents 29% of Pluxee’s total revenue and about 30% of its float.
Pluxee has not issued guidance since the decree. Deutsche Bank Research lowered its fiscal 2026-2028 revenue estimates by about 7% to 10%.
Underlying EBITDA projections were reduced by 13.6% to 16.5%, reflecting an estimated €80 million impact in fiscal 2026 and 2027.
The analysis also includes €30 million in restructuring costs in fiscal 2026, with financial charges and a 30% tax rate left unchanged. Earnings-per-share expectations for fiscal 2026-2028 were cut by 22.6% to 26.2%.