WAG Payment Solutions (Eurowag): migration season starts now (stays BUY)
We have updated our estimates for WAG Payment Solutions (Eurowag, EW), to reflect the most recent news on the rollout of its SaaS platform, and reduce our 12-month price target by 14% to GBP 120/share. Since our June 2023 initiation, economic headwinds for the trucking industry have impacted Eurowag’s core payment solutions business, from which it is only just recovering, while wage and technological costs have risen more quickly. Our new forecasts imply a 2022-25E net revenues CAGR of 21% and 20% for adjusted EBITDA (vs. 25% and 28%, respectively, previously), with a return to a mid-40%s adjusted EBITDA margin only in 2026E. Eurowag largely delivered on its current KPIs last year, achieving organic growth of 15% while both executing its technological transformation and integrating new businesses. It appears to be on track to migrate five core services to the new platform the by 4Q24E soft launch target, and the remainder during 2025E. The overhang created by one keystone investor has depressed the share price but the business model remains robust, in our view, with a clear path towards material earnings expansion in 2026E.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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.