Worldline: SG unimpressed by speculation.
(CercleFinance.com) - This morning Société Générale (SG) has reviewed the Worldline share, with the European payments sector having been brought to the boil by a number of potential M&A deals.
Unimpressed, analysts maintain their "hold" rating, as well as their 12-month target price of 31 euros (close to the share's current price).
Indeed, yesterday, the British payment processing specialist Worldpay revealed that it has been approached by the American groups Vantiv and JPMorgan Chase Bank. A few days earlier, on 1 July, the Danish player Nets confirmed that it had aroused interest as well.
Analysts point out that Worldline, which has a strong presence in the UK, is not very active in North America (27% of revenues). Meanwhile, Nets is well represented in Scandinavia, although little elsewhere. SG points out that both these companies have been acquired by private equity funds in recent years and that they remain heavily indebted even after they have been publicly traded. The note adds that neither group has explored markets other than those in which they have historically been present.
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.
Unimpressed, analysts maintain their "hold" rating, as well as their 12-month target price of 31 euros (close to the share's current price).
Indeed, yesterday, the British payment processing specialist Worldpay revealed that it has been approached by the American groups Vantiv and JPMorgan Chase Bank. A few days earlier, on 1 July, the Danish player Nets confirmed that it had aroused interest as well.
Analysts point out that Worldline, which has a strong presence in the UK, is not very active in North America (27% of revenues). Meanwhile, Nets is well represented in Scandinavia, although little elsewhere. SG points out that both these companies have been acquired by private equity funds in recent years and that they remain heavily indebted even after they have been publicly traded. The note adds that neither group has explored markets other than those in which they have historically been present.
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.