Restrictions from Irish cenbank on EML's ops raises growth concerns - UBS

EML Payments

26/07/2022 02:24

** UBS analysts say the Central Bank of Ireland (CBI) has
further pushed back on EML Payments'  EML.AX  remediation
programme, potentially increasing the risks of delaying the
their return to business as usual 
    ** Co said on Monday its Irish unit, PFS Card Services
(Ireland) Ltd, made adjustments to its remediation programme
after the CBI identified some shortcomings following a review of
its risk assessment framework  urn:newsml:reuters.com:*:nL4N2Z603P
    ** Says the CBI push-back could still lapse in Dec 2022,
leading to subdued new sales growth and impacting the sales
pipeline, as customers potentially look to other providers if
delays occur
    ** Given uncertainty around growth restrictions, UBS
downgrades rating on co to "neutral" from "buy" and cuts price
target to A$1.05 to A$2.10
    ** Five of nine analysts rate the stock "buy" or higher, two
rate it "hold" and two "sell", their median PT is A$2 -
Refinitiv Eikon 
    ** As of last close, stock down ~71.2% YTD
    

 (Reporting by Tejaswi Marthi in Bengaluru)
 ((tejaswi.marthi@thomsonreuters.com))