Analyst Hannes Leitner from Jefferies maintained a Hold rating on Worldline (0QVI – Research Report) and keeping the price target at €4.60.
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Hannes Leitner’s rating is based on a combination of factors, primarily focusing on Worldline’s exposure to high-risk merchant portfolios. Recent reports from various news outlets have highlighted concerns regarding Worldline’s involvement with these high-risk merchants, which has led to a significant revenue decline of €130 million as the company exits these contracts. This strategic move is expected to be finalized by the second quarter of 2025.
Despite the immediate negative impact on revenue and the sharp decline in share prices, the decision to wind down these contracts could stabilize Worldline’s financial outlook in the long term. However, the current uncertainty and potential implications of this transition have led to a cautious approach, justifying the Hold rating. Leitner’s assessment reflects a balance between the immediate challenges and the potential for future stability once the high-risk exposure is mitigated.
Leitner covers the Technology sector, focusing on stocks such as Worldline, Adyen, and Wise PLC Class A. According to TipRanks, Leitner has an average return of 17.2% and a 66.46% success rate on recommended stocks.
In another report released on June 20, Kepler Capital also maintained a Hold rating on the stock with a €4.70 price target.