Worldline’s Strategic Shift: Hold Rating Amid Operational Challenges and SME Focus

Stifel Nicolaus analyst David Vignon reiterated a Hold rating on Worldline (0QVI – Research Report) today and set a price target of €6.00.

David Vignon has given his Hold rating due to a combination of factors that reflect both the current performance and future strategic direction of Worldline. The company reported a quarter that met expectations, but the new management decided to withdraw the guidance previously set by the interim CEO. This decision was made in light of a negative impact on profitability stemming from the revenue mix, which has led to some cautious outlooks on future performance.
Furthermore, the new CEO, Pierre-Antoine Vacheron, has outlined a strategic focus on small and medium-sized enterprises (SMEs), which is seen as a positive long-term direction. However, the path forward is expected to be challenging, with necessary adjustments in the company’s operations and focus areas. The CEO’s plans include exiting certain businesses or geographies and addressing gaps in skills. While these strategic moves are promising, the current uncertainties and the need for operational improvements justify maintaining a Hold rating.

In another report released yesterday, Jefferies also maintained a Hold rating on the stock with a €5.60 price target.