EEFT: Future Share Repurchases Will Support Upside Amid Modest Macro Headwinds

Analysts have modestly reduced their price target on Euronet Worldwide, trimming fair value by about $5 to roughly $113, as they factor in slightly lower revenue growth and profit margin expectations following recent Q3 updates.

Analyst Commentary

Recent Street commentary on Euronet highlights a mixed backdrop, with modestly lower price targets but generally constructive views on the company’s positioning and the resilience of its end markets.

Bullish Takeaways

• Bullish analysts continue to see upside from Euronet’s diversified payments and fintech platforms, arguing that its global footprint and mix of recurring transaction volumes support long term growth and justify a premium to slower growing peers.
• The slight reduction in some price targets is framed as a calibration rather than a downgrade in the underlying thesis, with bullish analysts still pointing to double digit earnings growth potential once short term macro and FX headwinds normalize.
• Data points through September indicating resilient consumer spending are viewed as supportive for transaction volumes across Euronet’s ATM, money transfer, and digital channels, underpinning confidence in the company’s ability to execute on its growth plan.
• Participation in investor events and conference calls is cited as a positive for transparency and capital markets engagement, helping investors better gauge management’s execution against its strategic and financial targets.

Bearish Takeaways

• Bearish analysts have trimmed estimates following the Q3 update, reflecting caution around near term revenue growth and margin trajectory, which in turn reduces conviction in more aggressive valuation multiples.
• Elevated economic uncertainty is seen as a risk to discretionary travel and cross border activity, creating potential volatility in Euronet’s higher margin transaction flows and limiting near term upside to consensus forecasts.
• Some investors remain concerned that competitive pressures and regulatory scrutiny in payments could constrain pricing power over time, pressuring profitability and making it harder for Euronet to consistently outperform expectations.
• The modest cluster of lower price targets is interpreted as a signal that the risk reward has become more balanced, with less room for execution missteps before the stock could face multiple compression.

What's in the News

• Completed a major share repurchase program announced in February 2022, buying back a total of 12,673,988 shares, or 27.45% of shares outstanding, for approximately $1.26 billion. This signals sustained capital return to shareholders (company buyback update).
• In the most recent tranche from July 1, 2025 to September 30, 2025, repurchased 1,343,714 shares, or 3.28% of shares outstanding, for $131.31 million. This highlights continued confidence in long term value despite near term macro uncertainty (company buyback update).

Valuation Changes

• Fair Value: reduced modestly from approximately $117.43 to $112.57, reflecting slightly lower long term expectations.
• Discount Rate: edged down marginally from about 8.89% to 8.84%, indicating a slightly lower assumed risk profile.
• Revenue Growth: trimmed from roughly 7.11% to 6.40%, signaling a moderate downward revision to top line growth assumptions.
• Net Profit Margin: eased slightly from about 9.53% to 9.41%, implying a small reduction in expected profitability.
• Future P/E: decreased marginally from around 11.46x to 11.33x, pointing to a modest compression in the valuation multiple applied to forward earnings.