PayPoint’s Resilience and Strategic Growth Make It a Strong Buy

Hannes Leitner, an analyst from Jefferies, maintained the Buy rating on Paypoint (PAY – Research Report). The associated price target remains the same with p928.00.

Hannes Leitner has given his Buy rating due to a combination of factors that reflect both the current performance and future potential of PayPoint. Despite a slight miss in the top-line revenue for FY25, the company has shown resilience in its bottom-line results, maintaining an in-line U-EBITDA and meeting preliminary expectations for U-PBT and EPS. This stability in earnings, despite revenue challenges, suggests a solid financial foundation.
Furthermore, PayPoint’s strategic initiatives, such as targeting a £100m EBITDA for FY26 and aiming for 5-8% organic growth annually by FY28, demonstrate a forward-looking approach. The company’s focus on cost control and capital reduction through buybacks indicates a commitment to enhancing shareholder value. Additionally, growth in key areas like e-Commerce and the expansion of the UK retail network supports the positive outlook, making the stock an attractive buy according to Leitner.

According to TipRanks, Leitner is a 5-star analyst with an average return of 16.2% and a 62.66% success rate. Leitner covers the Technology sector, focusing on stocks such as Adyen, Wise PLC Class A, and Worldline.