ADYEN (Buy, TP: EUR1,600, +25%) Adyen - FY22 Model update; EBITDA margins pushed out, NII a significant offset at Net income
We have updated our Adyen model for FY 22 following this morning's results and earnings call this afternoon. EBITDA cuts are sizeable at ~20% as FTE hiring ramps and is targeted at more expensive hires. Offsetting this quite materially, however, is rising interest income. Adyen is arguably taking the bonus from higher rates to reinvest in LT value creation; whilst only partially impacting near-term net income. We have cut our target to EUR1,600 from EUR1,800 (we already assumed some NII contribution, unlike the street) but reiterate the Buy.Adyen NV, formerly Adyen BV, is provider of mobile, online and point-of-sale (POS) payment solutions based in the Netherlands. It operates an online platform enabling merchants to accept payments internationally and from all sales channels, such as online shops, mobile payments from applications and Websites, and POS, such as countertops, mobile terminals, tablets and cash registers, among others. The platform covers the entire payment chain, including technical, contractual, reconciliation and settlement processes. The platform is available in the form of ready-to-use payment pages (HPP), application programming interface (API), and client-side encryption solution (EE). The Company's customers include Mango, KLM, Netflix, Superdry, Uber, Groupon and Crocs, among others. It has offices in the Netherlands, the United Kingdom, France, Germany, Belgium, Brazil, China, Australia, Mexico, Singapore, Spain, Sweden and the United States.
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