Goldman Sachs has revised its outlook on payment specialist Worldline, adjusting the stock's rating to "Neutral" from "Buy." This reassessment comes in light of the company's stock rebounding nearly 50% since the third-quarter results were announced. Alongside the rating downgrade, the investment bank has also slashed the price target for Worldline from €39 to €17.
The revised stance by Goldman Sachs reflects concerns over Worldline's growth deceleration and rising expenses that could impact the firm's financial performance. The bank cited specific issues within the company that are anticipated to affect the quality of results and place additional pressure on free cash flow (FCF).
InvestingPro Insights
In line with Goldman Sachs' recent reassessment of Worldline, InvestingPro data also highlights some key trends and metrics that investors should consider. As of Q2 2023, Worldline's market cap stands at $4243.02 million and it trades at a P/E ratio of 9.2, indicating a relatively low price compared to the company's earnings. The company's revenue for the last twelve months as of Q2 2023 amounts to $5004.8 million, marking a 14.22% growth. However, the price has fallen significantly over the last year, with a return of -68.9%.
InvestingPro Tips provide some additional insights into Worldline's performance. The company has high earnings quality, with free cash flow exceeding net income, which is expected to grow this year. Despite the stock's high price volatility and significant price drop over the last year, it trades at a low price/book multiple and P/E ratio relative to near-term earnings growth.
For those interested in a deeper analysis, the InvestingPro platform offers numerous additional tips and data points. Currently, InvestingPro is offering a special Black Friday sale with a discount of up to 55% on subscriptions, providing access to a wealth of investment insights.
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