Ingenico: Barclays cuts target price
(CercleFinance.com) - Barclays is maintaining its "overweight" recommendation on the Ingenico stock, although has cut its corresponding target price from 83 euros to 68 euros, in a report where it considers a split between the payment terminals and payment services businesses.
The broker points out that the terminals business has proved to be highly unpredictable and has become a drag on the group's performance and the share's valuation. It says that a split could free up capital to support the consolidation of the payments division.
"We suspect that management may want to restructure Terminals first, but ultimately the business will be split," the broker believes, adding that "finding a potential buyer for it is not straightforward".
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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 broker points out that the terminals business has proved to be highly unpredictable and has become a drag on the group's performance and the share's valuation. It says that a split could free up capital to support the consolidation of the payments division.
"We suspect that management may want to restructure Terminals first, but ultimately the business will be split," the broker believes, adding that "finding a potential buyer for it is not straightforward".
Copyright (c) 2019 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.