Nexi: Limited Upside but Balanced Risk as Growth Concerns Offset Low Valuation

Jefferies analyst Hannes Leitner assigned a Hold rating on Nexi S.p.A. yesterday and set a price target of €3.10.

Hannes Leitner has given his Hold rating due to a combination of factors related to Nexi’s growth and balance sheet profile. He remains cautious on the company’s ability to deliver stronger near‑term revenue expansion and is unconvinced that management can reliably achieve a sustained mid‑single‑digit increase in sales over the medium term.

At the same time, upcoming contract expirations are expected to weigh on margins and limit cash generation, which could slow the pace of deleveraging that he views as essential for a sustained rerating of the shares. However, with the stock already trading at about 4.7x EV to 2027 EBITDA, he believes much of this challenging outlook is already reflected in the valuation, leaving limited upside but also not enough downside to justify a Sell recommendation.

In another report released on March 26, Kepler Capital also maintained a Hold rating on the stock with a €3.10 price target.