Analyst Hannes Leitner from Jefferies maintained a Hold rating on Worldline and decreased the price target to €2.80 from €3.50.
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Hannes Leitner has given his Hold rating due to a combination of factors impacting Worldline’s financial outlook. The company’s core business is stabilizing, and there is a focus on generating cash, which is crucial given the tightened debt markets following a recent downgrade by S&P. While some operational challenges, such as hardware issues, have been addressed, the recovery of lost contracts remains uncertain.
Leitner’s updated model reflects a more cautious approach to cash generation and considers the latest foreign exchange rates. Despite some positive developments, the overall outlook is tempered by these ongoing concerns, leading to a revised price target of €2.60 based on lower free cash flow estimates. These elements collectively contribute to the Hold rating, suggesting that investors should maintain their current positions without making additional commitments at this time.
According to TipRanks, Leitner is a 5-star analyst with an average return of 16.1% and a 63.31% success rate. Leitner covers the Technology sector, focusing on stocks such as Adyen, Wise PLC Class A, and Worldline.