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Euronet shares retain Outperform rating as Oppenheimer highlights 31% upside potential

EditorAhmed Abdulazez Abdulkadir
Published 25/11/2024, 14:58
EEFT
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On Monday, Oppenheimer has increased the price target for Euronet Worldwide (NASDAQ:EEFT) to $135, up from the previous target of $121, while maintaining an Outperform rating on the stock. The adjustment reflects a positive outlook on the company's growth prospects, underpinned by a detailed sum-of-the-parts analysis conducted by the firm.

The analysis by Oppenheimer suggests a 31% upside potential for Euronet's stock, based on the evaluation of the company's three business segments. The new price target is supported by an increase in the expected earnings per share (EPS) multiple to 12 times for the year 2026, up from 11 times, as well as a thorough valuation of the company's segments considering potential dis-synergies.

Euronet's performance in 2025 is anticipated to be strong, with low double-digit growth in adjusted EBITDA. This outlook is grounded in several factors, including the recovery of European travel, expansion of ATM networks in new markets, growth in Money Transfer agent locations, and robust partnerships in the epay segment.

Moreover, the firm highlights that Euronet's diversification strategy is likely to provide resilience against the digitization of cash transactions. The company's investment in the REN payments platform, Dandelion cross-border payments, and merchant acquiring are expected to contribute to its long-term stability and continued revenue growth. Oppenheimer reiterates its Outperform rating, signaling confidence in Euronet's future performance.

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

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