Worldline: Oddo still a buyer - targets 77 euros
(CercleFinance.com) - On Monday morning, Worldline announced the acquisition of Ingenico.
Oddo says that this deal will give birth to the 4th largest global player in payments, with revenues of 5.3 billion euros and EBITDA of 1.2 billion euros.
Analysts point out that Worldline will immediately benefit from a double-digit accretive effect on EPS, as promised by managers, as well as synergies of 250 million euros by 2024.
"Worldline has also published satisfactory 2019 results relative to expectations, with organic sales growth of +6.9% (Oddo BHF/consensus equal to 6.9%/6.8%) and an EBITDA of 602 million euros, i.e. a margin of 25.3% (Oddo BHF/Consensus equal to 596/600 million euros). 2020 targets include organic sales growth of over 7% (Oddo BHF/consensus expectations of 7.5%/7.4%), and an EBITDA margin of 26%/27% (Oddo BHF/consensus equal to 26.9%/26.7%), the broker says.
Oddo maintains its Buy rating on the share, with target price of 77 euros, meaning 26% upside (68 euros at current scope).
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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.
Oddo says that this deal will give birth to the 4th largest global player in payments, with revenues of 5.3 billion euros and EBITDA of 1.2 billion euros.
Analysts point out that Worldline will immediately benefit from a double-digit accretive effect on EPS, as promised by managers, as well as synergies of 250 million euros by 2024.
"Worldline has also published satisfactory 2019 results relative to expectations, with organic sales growth of +6.9% (Oddo BHF/consensus equal to 6.9%/6.8%) and an EBITDA of 602 million euros, i.e. a margin of 25.3% (Oddo BHF/Consensus equal to 596/600 million euros). 2020 targets include organic sales growth of over 7% (Oddo BHF/consensus expectations of 7.5%/7.4%), and an EBITDA margin of 26%/27% (Oddo BHF/consensus equal to 26.9%/26.7%), the broker says.
Oddo maintains its Buy rating on the share, with target price of 77 euros, meaning 26% upside (68 euros at current scope).
Copyright (c) 2020 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.