Worldline: Invest Securities halves target price
(CercleFinance.com) - Invest Securities reiterates its "buy" rating on Worldline shares, while halving its target price for them to E23, after lowering its estimates and taking into account a higher beta for the payment solutions group.
While the share price had already been divided by four from its July 2021 peaks, only a third of yesterday's collapse (-59%) can be explained by its profit warning, the analyst argues, who thus deems the stockmarket reaction "disproportionate".
Considering that there are no fears about the financial structure or risk of fraud, he explains that this reaction due to the risk of the business' "commoditisation", a scenario that he does not believe in, given the renewed interest of Private Equity funds in the sector.
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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.
While the share price had already been divided by four from its July 2021 peaks, only a third of yesterday's collapse (-59%) can be explained by its profit warning, the analyst argues, who thus deems the stockmarket reaction "disproportionate".
Considering that there are no fears about the financial structure or risk of fraud, he explains that this reaction due to the risk of the business' "commoditisation", a scenario that he does not believe in, given the renewed interest of Private Equity funds in the sector.
Copyright (c) 2023 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.