Analyst Raises Concerns About Euronet, Highlights Reduced Intra-European Travel Transactions Amid Inflationary Pressures
Portfolio Pulse from Nabaparna Bhattacharya
Needham analyst Mayank Tandon has reiterated a Buy rating on Euronet Worldwide, Inc. (NASDAQ:EEFT), but lowered the price target from $125 to $115. Tandon cited reduced intra-European travel transactions due to inflationary pressures and macro uncertainty as reasons for the adjustment. Despite this, Tandon believes EEFT's diversified payment businesses should generate mid to high-teens EPS growth over the long term. The analyst also lowered the EBITDA and EPS estimates for FY23/FY24.
August 23, 2023 | 7:01 pm
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Euronet Worldwide's price target has been lowered by Needham analyst due to reduced intra-European travel transactions amid inflationary pressures. However, the company's diversified payment businesses are expected to generate mid to high-teens EPS growth over the long term.
The lowered price target and EPS estimates for Euronet Worldwide are due to reduced intra-European travel transactions, which have been attributed to inflationary pressures and macro uncertainty. This could negatively impact the company's stock price in the short term. However, the analyst's positive outlook on the company's diversified payment businesses and expected EPS growth could mitigate this impact over the long term.
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