Analyst Gustavo Gala of Monness reiterated a Buy rating on Euronet Worldwide (EEFT – Research Report), retaining the price target of $150.00.
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Gustavo Gala has given his Buy rating due to a combination of factors that highlight Euronet Worldwide’s strong financial performance and growth potential. The company has delivered impressive results with beats in EBITDA, EPS, and topline, coupled with a promising outlook for 12-16% EPS growth, which is above the consensus and shows a significant improvement over the previous year’s guidance. The growth in digital transactions and improved margins in the money transfer and EFT segments underscore Euronet’s successful digital diversification strategy and ATM fleet optimization.
Additionally, the company’s money transfer operations at Ria benefit from a greater digital mix compared to competitors, resulting in higher profitability and growth prospects. The potential for digital transaction growth, particularly through the commercialization of Dandelion in larger corridors, presents a meaningful opportunity for margin expansion. Furthermore, Euronet’s EFT segment is expected to continue its strong performance, with management targeting robust profit growth. Lastly, the epay segment is poised for continued success with strategic deals and service launches, reinforcing the overall positive outlook for Euronet Worldwide.
In another report released yesterday, D.A. Davidson also maintained a Buy rating on the stock with a $140.00 price target.