UBS cuts PT on Australia's EML Payments after 'mixed' trading update

EML Payments

28/11/2022 01:09

** UBS cuts PT for Australia's EML Payments Ltd  EML.AX  to
A$0.73 from A$1.15 following co's recent AGM update, which it
thinks was a mix of positives and negatives
    ** UBS says co's revised overhead expectations were a key
negative in the update, with guidance implying a material
decline in EBITDA margins, due to higher regulatory costs
    ** UBS retains "neutral" rating considering elevated
uncertainty around regulatory issues and execution of the
strategic review 
    ** Brokerage also expects suspension of buy-back to result
in some disappointment 
    ** Brokerage downgrades FY23 EPS estimate by 69%, FY24
estimate by 46% and FY25 EPS estimate by 30%
    ** UBS says co's upgraded FY23 interest expectations was one
of the key positives in the update
    ** EML stock last down 5.4% at A$0.615
    ** One of seven analysts rate the stock "buy", four "hold"
and two "sell"; their median PT is A$1.15 – Refinitiv data
    ** Stock has fallen 79.9% this year, as of last close
 (Reporting by Nausheen Thusoo)
 ((Nausheen.Thusoo@thomsonreuters.com;))