Update shared on 21 Nov 2025
Fair value Decreased 22%Worldline's analyst price target has dropped significantly from EUR 3.20 to EUR 2.51. Analysts have adjusted their models lower due to concerns over deteriorating revenue growth, declining margins, and ongoing cash flow challenges.
Analyst Commentary
Recent analyst reports on Worldline reflect a mix of optimism and caution, as price targets and recommendations are widely adjusted to reflect current business conditions.
Bullish Takeaways
- Bullish analysts see potential for valuation recovery, as some maintain a Buy rating despite recent price target reductions.
- Expectations for a stabilization in revenue and margins provide a basis for upside if execution improves.
- Optimism remains that strategic adjustments or efficiency initiatives could bolster medium-term growth prospects.
Bearish Takeaways
- Bearish analysts point to deteriorating revenue trends and further downside risk to growth assumptions.
- Concerns are raised about declining margins and the company's ongoing inability to generate free cash flow, with some anticipating continued weakness into fiscal 2025.
- Lowered price targets reflect skepticism regarding Worldline's near-term operational execution and the effectiveness of recent strategic shifts.
- Outlooks remain cautious as analysts highlight the need for a reset in expectations in light of current challenges.
What's in the News
- Worldline SA announces a private placement to issue common shares for gross proceeds of €110 million, with new and existing investors. Once completed, Bpifrance will hold a 9.6% stake, Crédit Agricole will hold 9.5%, and BNP Paribas will hold 7.9% (Key Developments).
- The company is set to be removed from the Euronext 150 Index (Key Developments).
- Worldline has revised its 2025 earnings guidance, now anticipating a low single digit percentage organic revenue decline, with expectations of an improvement in the second half of the year compared to the first (Key Developments).
- Srikanth Seshadri has been appointed as Chief Financial Officer and Executive Committee member, effective September 8, 2025, succeeding Gregory Lambertie (Key Developments).
Valuation Changes
- Fair Value Estimate has fallen significantly from €3.20 to €2.51, reflecting lower growth expectations and profitability.
- Discount Rate remains unchanged at 12.3%, which indicates no shift in perceived risk or required return.
- Revenue Growth outlook has declined sharply, moving from -1.91% to -8.11% year-over-year.
- Net Profit Margin projection has dropped materially, from 1.8% to 0.44%.
- Future P/E Ratio has increased substantially from 15.6x to 52.3x, which signals lower earnings forecasts relative to share price.
Disclaimer
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