Nexi: Limited Near-Term Growth and Balanced Risk Keep Valuation Low and Rating at Hold

In a report released yesterday, Mohammed Moawalla from Goldman Sachs downgraded Nexi S.p.A. to a Hold, with a price target of €3.50.

Mohammed Moawalla has given his Hold rating due to a combination of factors, primarily the limited prospects for a meaningful rebound in Nexi’s growth over the next year as bank contract roll-offs and front-loaded investments weigh on both revenues and margins. Although he recognizes that the shares trade at historically low valuation levels after material underperformance versus the broader European market, he believes investors will likely wait for clearer signs of sustained growth acceleration before re‑rating the stock.

At the same time, Moawalla acknowledges that Nexi offers a relatively solid dividend outlook and healthier cash generation than some peers, even if expected capital returns are now lower than he once anticipated. He also highlights a balanced risk profile around his forecasts, with scenario analysis suggesting roughly symmetrical upside and downside, and views Nexi as better positioned than Worldline but structurally less attractive than higher-growth names such as Adyen, which supports maintaining a Neutral stance rather than a more positive or negative recommendation.

In another report released on March 31, Jefferies also assigned a Hold rating to the stock with a €3.10 price target.

NEXI’s price has also changed moderately for the past six months – from EUR4.894 to EUR3.456, which is a -29.38% drop .