Worldline: We include SIX Payment Services into our model and valuation
Worldline: (BUY, Fair Value EUR50 vs. EUR43 (+5%))We include SIX Payment Services into our model and valuation
When we include SPS into our model as of 1st January 2019, the impact on our EPS sequence is gobally in line with the company guidance. Indeed, the company targets a slight accretion in 2019e EPS (BG: +0.8%), high single digit EPS accretion in 2020e (BG: +8.5%), double digit EPS accretion in 2021e (BG: +16.7%), and no indication in 2022e (BG: +16.7%). We expect the real take-off in 2021e, as we estimate that 90% of the EUR110m synergies will be activated the 3rd year. All in all, we fully confirm our first simulation, namely that SPS adds EUR7 per share. As a result, we raise our FV from EUR43 to EUR50 and maintain our Buy recommendation. Even if the share price is not far from our FV, we advise investors to play the positive momentum (sector and company specific).
Worldline is a financial transaction processing company based in France. Co's operations are organized along three segments covering payments and digital services: Merchant Services & Terminals (facilitating consumer engagement around end-to-end e-payment transactional services on any device – before, during and after the point of sale); eMobility and eTransactional Services (assists businesses and governments in developing new digital services enabling strategic digital transformation); and Financial Processing & Software Licensing (provides processing services to banks and financial institutions for managing card-based and online cashless payments).
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.