On Friday, Morgan Stanley initiated coverage of Pluxee shares with a 'weighted in line' recommendation and a price target of 32 euros, indicating a 'modest' upside potential of 7%.

In a research note, the intermediary praises the French group's solid, profitable and cash-generating growth in the little-explored employee benefits market.

In view of its robust balance sheet, the analyst believes that the meal voucher issuer could embark on an accretive M&A policy, likely to give it a new dimension in the years ahead.

However, he also points out that the targets communicated by the company may appear ambitious in the light of its historical performance, arguing that this has so far been inferior to that of its competitor Edenred in terms of a whole series of key indicators.

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