Hannes Leitner, an analyst from Jefferies, maintained the Hold rating on Worldline. The associated price target remains the same with €3.80.
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Hannes Leitner’s rating is based on a combination of factors that suggest a cautious approach towards Worldline’s stock. The anticipated decline in total revenues by 4% organically, which is slightly below consensus expectations, indicates potential challenges in the company’s growth trajectory. Specifically, the expected decreases in Merchant Services and Financial Services by 3% and 11% respectively, contrast with a modest 2% growth in Mobility and e-Transactional Services.
Moreover, the projected EBITDA margin of 19% for the first half, which is 5% below expectations, highlights a shift towards lower-margin business segments. This financial outlook, coupled with the upcoming 2025 guidance and management’s commentary on external assessments, suggests a period of uncertainty. These elements collectively justify the Hold rating as investors await clearer signals on future performance.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a €3.80 price target.