PARIS (Reuters) – Worldline is volatile on Monday morning on the stock market after Goldman Sachs lowered its recommendation on the French specialist in payment solutions from “buy” to “neutral”, the intermediary believing that “specific problems to the company” weigh on its growth prospects.
On the Paris Stock Exchange, around 10:10 a.m. GMT, Worldline shares advanced 0.36% to 13.815 euros compared to a gain of 0.35% for the CAC 40 index. The “fintech” title lost in the first trades almost 4% to 13.2 euros before recovering.
Goldman Sachs lowered its forecast for Worldline for the group’s revenue and margin growth through 2027, highlighting “the termination of risky contracts in the Merchant Services division, a smaller than expected repricing in the renewals (of contracts) and a lack of performance in the product range of the Financial Processing division”.
Worldline shares have gained around 50% since their sudden collapse at the end of October following a “profit warning”, which has led Goldman Sachs to now estimate that there is “less upside” to be expected in the stock.
Of the 21 analysts covering Worldline, 11 recommend the stock as “strong buy” or “buy”, six as “hold” and four as “strong sell” or “sell”.
(Report Victor Goury-Laffont, Claude Chendjou, edited by Blandine Hénault)
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