Wirecard: A “conservative†Vision 2025 according to management
Wirecard: (BUY, Fair Value EUR240 vs. EUR220 (+32%))A “conservative†Vision 2025 according to management
Business so far gave Wirecard enough confidence to confirm its recently-raised forecast for FY 2018 and Vision 2020 but also to give visibility until 2025. Prior to its Capital Markets Day, the group gave its first 2025 financial targets (fully organic). It expects a revenue CAGR 2020-25 of +27.2% and a 2025 EBITDA >EUR3bn i.e. even higher than its revenue guidance for 2020 and 6x the EBITDA 2018. CEO Markus Braun stated several times that Visions 2020 and 2025 were based on conservative figures (notably on transaction volumes and take rates assumptions). We have increased our rest. EPS sequence by +0.9% in 2018e, +4.0% in 2019e and +9.3% in 2020e. We maintain our Buy rating and raise our FV from EUR220 to EUR240 (strong fundamentals and good momentum).
Wirecard is engaged in the business of global payment processing, risk management and payment acceptance, as well as card issuing. Co. operates in three segments: Payment Processing & Risk Management, which comprises of products and service for the acceptance or implementation and the downstream processing of electronic payments and the associated processes; Acquiring & Issuing, which includes acceptance (acquiring) and issuing credit cards and prepaid cards, as well as account and payment transaction services; and Call Center & Communication Services, which comprises all of the products and services that address the call centre assisted support of corporate and private customers.
Since 1996, Bryan, Garnier & Co has been growing with an absolute conviction that the investment banking landscape would experience a major revolution: most of the large local generalist banking groups will disappear to the benefit of a handful of global powerhouses, and an emerging group of independent, highly specialised boutique investment banks.
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