Canaccord Genuity initiates EML Payments stock with Buy rating

Published 16/07/2025, 09:28
Canaccord Genuity initiates EML Payments stock with Buy rating

Investing.com - Canaccord Genuity initiated coverage on EML Payments Ltd (ASX:EML) (OTC:EMCHF) with a Buy rating and a price target of AUD1.80.

The research firm cited EML’s growth plans, which include a projected four-year revenue compound annual growth rate (CAGR) of 12% and medium-term EBITDA margins of 35%.

Canaccord forecasts adjusted EBITDA increasing to $80 million in fiscal year 2028, with free cash flow generation of over $44 million, representing an enterprise value to EBITDA ratio of approximately 5x.

The firm sees potential upside to EML’s share price driven by management meeting its long-term targets, coupled with a multiple re-rating to 12x FY28 estimated EV/EBITDA, which would align with its comparable peer group.

Canaccord’s AUD1.80 price target is based on a discounted cash flow (DCF) valuation methodology, according to the research note.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.