Stifel cuts Adyen on P&L pressures, prefers Worldline among payment services
** Stifel cuts Dutch payment solutions provider Adyen to ADYEN.AS "hold" from "buy", warning that the company could be hit over the next year by declining volumes in online payments on the U.S. market
** The broker sees a "lack of positive catalysts" for the Amsterdam-listed group and flags under-staffing and aggressive pricing from competitors, mainly PayPal PYPL.O, as areas of concern
** According to Stifel estimations, Adyen has lost 15%-20% of its volumes on the online marketplace eBay EBAY.O, in addition to a negative impact from a decline in purchases
** Amongst payment services providers, Stifel prefers France's Wordline WLN.PA, for which it maintains its "buy" rating, pointing to the company's overachievement in its main unit, merchant services, and seeing its current low valuation as an opportunity
** "While we acknowledge the group has made some mistakes, notably in terms of communication, we struggle to understand why the stock’s valuation is so depressed"- Stifel
** Stifel also sticks with a "buy" rating for Italy's Nexi NEXII.MI, underlining its positive exposure to the sector's fastest-growing segment, merchant solutions
Reporting by Victor Goury-Laffont
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