Jefferies prefers Adyen over Worldline against 2024 headwinds
07/12/2023 09:34
** Jefferies prefers Adyen ADYEN.AS over Worldline
WLN.PA as digital payments companies face difficult market
dynamics in 2024
** The broker upgrades Adyen to "buy" from "hold", saying
the Dutch company is well placed to weather the tough macro
backdrop in Europe thanks to its global diversification
** "Since Adyen lowered its mid-term ambition, we believe
sentiment has finally converged between sell- and buy-side
expectations, likely limiting the short-interest for the time
being," it says
** Jefferies rates UK-based Boku BOKU.L and Eurowag
WPS.L as "buy", saying they are also well prepared for 2024
** It cuts Worldline to "underperform" from "hold" citing
"multiple company specific headwinds ahead"
** "We see no quick fix of the four identified key concerns
as possible, meaning 2024 will be a year of transition," the
broker says about Worldline
** These concerns include negative growth momentum, rising
cost pressure, likely further need for restructuring and high
underlying debt levels, it says
** Shares in Adyen rise as much as 1.9%, while Worldline
falls as much as 5.6%
(Reporting by Gaëlle Sheehan)
((gaelle.sheehan@thomsonreuters.com; +48 58 7785110;))