In a report released today, David Vignon from Stifel Nicolaus maintained a Buy rating on Nexi S.p.A. (NEXI – Research Report), with a price target of €7.75.
David Vignon has given his Buy rating due to a combination of factors that highlight Nexi S.p.A.’s strategic focus on returning cash to shareholders. Despite a mixed performance in the fourth quarter of 2024 and a somewhat weak guidance for 2025, Nexi’s commitment to shareholder returns is evident through its announcement of a €0.25 per share dividend and a €300 million share buyback program. This approach is expected to return over 10% of the company’s market capitalization to shareholders in 2025, demonstrating a strong commitment to enhancing shareholder value.
Moreover, while the Merchant Solutions segment showed signs of slowing, Nexi’s Issuing Solutions performed better than expected, contributing positively to the company’s revenue. The company’s financial health is further supported by solid free cash flow generation, which exceeded consensus expectations in the second half of 2024. This financial stability, coupled with a manageable net debt to EBITDA ratio, reinforces the Buy rating as Nexi positions itself for future growth while prioritizing shareholder returns.
According to TipRanks, Vignon is a 3-star analyst with an average return of 3.4% and a 54.55% success rate.
In another report released on February 25, Kepler Capital also maintained a Buy rating on the stock with a €9.00 price target.