On Friday, Goldman Sachs maintained its Conviction Buy rating on Adyen NV (AS:ADYEN:NA) (OTC: ADYYF) stock, with a steadfast price target of €1,950.00. Goldman Sachs anticipates Adyen to align with market expectations in its upcoming third-quarter 2024 business update scheduled for November 7, 2024. The firm's confidence is bolstered by Adyen's consistent growth in wallet share among its existing customer base across all three of its primary pillars.
Goldman Sachs projects a 40% year-over-year growth in Total Payment Volume (TPV), excluding foreign exchange impacts, and around 22% growth in net revenue year-over-year, also adjusted for foreign exchange. These estimates are in harmony with the consensus. The upcoming third quarter is expected to reflect a stabilization in incremental take rates, especially as the influence of Cash App is projected to normalize towards the end of the quarter.
The financial institution's outlook for Adyen is underpinned by the company's advanced technological offerings, which Goldman Sachs believes will continue to drive its structural thesis. Adyen's technology is seen as a key factor in its ability to maintain and expand its market position.
Goldman Sachs' endorsement comes ahead of Adyen's detailed financial disclosure, where key performance indicators (KPIs) will be shared with investors and stakeholders. The firm's analysis suggests that the payment solutions provider is on track to sustain its growth trajectory, which has been a defining characteristic of its market performance.
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