Morningstar flags weak consumer spending weighing on EML Payments

EML Payments

13/04/2026 20:06

** Morningstar reduces Australia's EML Payments' EML.AX fair value estimate to A$0.95 per share from A$1.05 due to lower future debit volumes

** Brokerage anticipates subdued consumer spending to persist over the medium term affecting EML's growth

** Expects EBITDA averaging A$47 million ($33.32 million) per year over the next decade, at the bottom of EML's fiscal 2026 guidance range

** Says slower onboarding and longer sales process might cause temporary delays to EML's growth, indicating softer demand

** EML shares have weakened amid regulatory pressure on its Australian unit to put extra protections in place over customer card balances during its license review, leading to short-term uncertainty and potential extra costs, brokerage says

** EML stock down 60% YTD, as of last close

($1 = 1.4104 Australian dollars)

 (Reporting by Sruthi Narasimha Chari in Bengaluru)

 ((Sruthinarasimha.chari@thomsonreuters.com))