Ingenico: expect profit warning on 26 July, Berenberg says.
(CercleFinance.com) - Ingenico is set to warn on its full-year Ebitda margin expansion target when first-half results are released on 26 July, say analysts at Berenberg, who have a "sell" rating on the stock, with a target price of 80 euros.
The German investment bank believes that Ingenico's Ebitda margin has not yet bottomed out as the French payment processor is facing "too many headwinds" in its view.
"The combination of increased competition, required investments in both terminals and services, the deteriorating mix between services and terminals, the terminal average selling price deflation, and the steep deceleration we saw at the end of last year makes us believe that the Ebitda margin will compress in 2017," Berenberg says.
However, on the other hand, this morning Bryan Garnier reiterates its "buy" rating on the stock, with a target price of 112 euros, saying that VeriFone's "solid" second-quarter results are encouraging for Ingenico concerning EMV in the US.
As a reminder, Bryan Garnier added Ingenico to its "top pick list" in last April with a short-term target price of 100 euros.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The German investment bank believes that Ingenico's Ebitda margin has not yet bottomed out as the French payment processor is facing "too many headwinds" in its view.
"The combination of increased competition, required investments in both terminals and services, the deteriorating mix between services and terminals, the terminal average selling price deflation, and the steep deceleration we saw at the end of last year makes us believe that the Ebitda margin will compress in 2017," Berenberg says.
However, on the other hand, this morning Bryan Garnier reiterates its "buy" rating on the stock, with a target price of 112 euros, saying that VeriFone's "solid" second-quarter results are encouraging for Ingenico concerning EMV in the US.
As a reminder, Bryan Garnier added Ingenico to its "top pick list" in last April with a short-term target price of 100 euros.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.