Citi positive on European payments into 2025 backed by e-commerce

Temenos AG

12/12/2024 09:39

** Citi Research expects the European payments sector to
trend positively into 2025, particularly in e-commerce, but
remains cautious in other areas of fintech where it sees some
steadying growth as segments mature
    ** The broker expects macro environment turning more
supportive for payments, with consumer spending still uncertain
in 2025
    ** However, sees online transactions to exceed trends, while
expecting low in-store expectations 
    ** Citi believes that secular growth in electronic payments
will continue, driven by ongoing shift away from cash, with
payments becoming increasingly complex, greater cross-border
activity and supportive regulation
    ** The broker says it is positive on firms exposed to
e-commerce given robust online spending trends and expectations
of a more rational price competition, with Adyen  ADYEN.AS  as
its top pick

    
 COMPANY           RATING           PT
 Adyen  ADYEN.AS   Buy              EUR 1,512.60
 Edenred           Neutral          EUR 31.65 
  EDEN.PA                           
 Nexi  NEXI.PA     Buy              EUR 5.80
 Pluxee  PLX.PA    Buy              EUR 20.43
 Temenos  TEMN.S   Neutral          SFr 59.65
 W.A.G payment     Buy              GBp 0.83
 solutions                          
  WPS.L                             
 Wise PLC          Sell             GBp 9.35
  WISEa.L                           
 Worldline SA      Buy/High-risk    EUR 8.16
  WLN.PA                            
 
 (Reporting by Hugo Lhomedet)
 ((hugo.lhomedet@thomsonreuters.com))