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Ingenico: Bryan Garnier places buy rating under review

(CercleFinance.com) - Pending more clarity, broker Bryan, Garnier & Co.
has placed its buy rating and target price for the Ingenico share under review, after the electronic banking group published its 2017 results, coupled with forecasts that are below expectations. Its report highlights a "lack of visibility for 2018 and beyond," while the stock has crumbled about 14% on the Paris Stock Exchange this morning.

Last year, the electronic banking group reported revenues that were up 9% at 2.5 billion euros, with acceleration at the end of the year, and EBITDA up 10% at 526 million euros. In 2018, management targets EBITDA of between 545 million and 570 million euros (including negative FX factors), with H2 more upbeat than H1. Over 2018/2020, the group expects "double-digit EBITDA CAGR".

Admittedly, Bryan Garnier notes that the group's performance in 2017 exceeded the consensus, both in terms of sales (expected at 2.48 billion euros by the market) and EBITDA (forecast of 512 million euros). However, "for 2018: Ingenico does not give any guidance regarding the topline," which is considered "surprising" by analysts in a "fixed costs" industry. In addition, the consensus forecast 2018 EBITDA of 623 million euros (and Bryan Garnier 642 million euros), figures which are well above those targeted by management.

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