Jefferies trims PT on New Zealand's SmartPay on persistent headwinds

Smartpay Holdings

27/05/2024 21:05

** Analysts at Jefferies see further macroeconomic headwinds
for New Zealand's SmartPay  SPY.NZ  
    ** Brokerage cuts its target price on payments processor to
NZ$1.50 from NZ$2.10
    ** SPY posted on Monday net merchant additions in 2H24 of
700, down from 2,000 in 1H24
    ** "We forecast for net merchant additions to improve... in
FY25, but still down from FY23 levels from persistent macro
headwinds" - Jefferies
    ** However, Jefferies sees SPY's targeted entry into New
Zealand's acquiring business by FY25, allowing it to process
point of sales payments for merchants without involving a bank,
as a positive catalyst
    ** Stock down 11.8% YTD, based on last close

 (Reporting by Aaditya Govind Rao in Bengaluru; editing by
Jonathan Oatis)
 ((Aaditya.govindrao@thomsonreuters.com;))