Morningstar sees Australia's EML Payments better-positioned for earnings growth

EML Payments

29/05/2024 24:24

** Morningstar says EML Payments Ltd  EML.AX  is
better-positioned for earnings growth relative to the past three
years
    ** Brokerage retains price target of A$1.05 for the payment
solutions platform, says shares appear as "mildly undervalued"
    ** Morningstar says, following wind-down of reloadable cards
business PFS Card Services Ireland Ltd (PCSIL), EML's management
is now unencumbered by distractions and can focus on expanding
the business
    ** Sees "revenue growth (for EML) to come from new customer
wins and incremental volumes from existing customers"
    ** Brokerage says cost-outs are expected to persist into
FY25, helping to stabilize earnings
    ** Sees EML's underlying EBITDA to average about A$51 mln
($33.91 mln) per year over the four years to FY28, vs A$37 mln
in FY23
    ** EML stock up 24.7% YTD, as of last close 
 


($1 = 1.5040 Australian dollars)

 (Reporting by Ayushman Ojha in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com;))