Ingenico: Barclays Capital upgrades to Buy
(CercleFinance.com) - Barclays Capital has upgraded its rating on the Ingenico share to "overweight," from its previous neutral rating "weight in line".
Alongside this upgrade, it has raised its target price from 78 euros to 91 euros, which represents upside potential of close to 30%.
BarCap admits that in the past, it was not particularly excited about the acquisition strategy of the electronic transactions group. However, analysts acknowledge that its external growth operations, although expensive, have provided the group with "an attractive collection of assets" of a "strategic" value with double-digit growth: Bambora, Global Collect, Easycash and BS Payone. In addition, players in the payments sector are quickly teaming up in Europe, as evidenced by the recent deals completed by Worldline and Nets.
Analysts have therefore raised their sum-of-the-parts valuation for Ingenico. Indeed, everything is not rosy for the French group, whose second quarter is expected be limp in terms of sales. However, the upside potential offered by the share's target price justifies a more aggressive stance, Barclays Capital says.
Copyright (c) 2018 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.
Alongside this upgrade, it has raised its target price from 78 euros to 91 euros, which represents upside potential of close to 30%.
BarCap admits that in the past, it was not particularly excited about the acquisition strategy of the electronic transactions group. However, analysts acknowledge that its external growth operations, although expensive, have provided the group with "an attractive collection of assets" of a "strategic" value with double-digit growth: Bambora, Global Collect, Easycash and BS Payone. In addition, players in the payments sector are quickly teaming up in Europe, as evidenced by the recent deals completed by Worldline and Nets.
Analysts have therefore raised their sum-of-the-parts valuation for Ingenico. Indeed, everything is not rosy for the French group, whose second quarter is expected be limp in terms of sales. However, the upside potential offered by the share's target price justifies a more aggressive stance, Barclays Capital says.
Copyright (c) 2018 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.