On Thursday, JPMorgan maintained a positive outlook on Adyen NV (AS:ADYEN:NA) (OTC: ADYYF) stock, reiterating an Overweight rating with a price target of EUR1,500.00.
The firm's analysis suggests that Adyen's performance in the second half of 2024 will likely surpass expectations. Despite concerns from some investors about potential market share loss following a miss in the first half of 2023, Adyen has demonstrated robust growth, outpacing its primary competitor Stripe in terms of processed volume in 2022 and 2023.
Adyen's growth has not only exceeded that of Stripe, but it has also surpassed the overall e-commerce market and US payments growth in 2023. According to JPMorgan's assessment, Adyen's market share within US payment networks was only 5.8% in the first half of 2024, which underscores a year-over-year acceleration in market share gains after a modest slowdown in 2023. This indicates that Adyen's market share is understated and that there is significant room for growth.
Adyen's current market positioning suggests that the company has the potential for multi-year growth. JPMorgan's stance reinforces the view that the payment processing company is on a strong footing and is likely to continue its upward trajectory in the industry. The Overweight rating affirms Adyen's solid performance and promising future prospects in the payments sector.
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