(Boursier.com) — Worldline lost 1.2% this Friday morning to 13.13 euros. The group has retained Morgan Stanley and Rothschild to advise it on its defense strategy against activism, Reuters reported. This is about reassuring the markets and also avoiding a hostile takeover after the spectacular plunge in the price. Sources familiar with the matter cited by the agency said earlier this week that Worldline advisors had begun contacting potential investors, including French financial institutions, pension funds and sovereign wealth funds, with a view to taking a minority stake. , with a possible sale of assets once the company has secured an anchor investor.
Still according to these sources, Worldline is currently focusing on management changes and the search for a replacement for president Bernard Bourigeaud, while a friendly purchase offer made by a buyer acceptable to the French government could also be studied. , although this is currently unlikely…
Caution displayed
Among the latest broker opinions, Jefferies remains ‘underperforming’ on Worldline with a target reduced from 12.30 to 11.60 euros. After HSBC and BNP Paribas Exane in recent days, Stifel had also downgraded the title of the payments group to ‘hold’. While the broker initially thought Worldline’s visibility was “fairly strong”, third quarter results proved otherwise… Pending a likely mid-term update in the second half, the broker noted a lack of positive catalysts for the company. 2024 will be a transition year, with tepid growth, weak OMDA margin expansion, lackluster FCF generation, and revised mid-term expectations.
The company and management are facing a high level of distrust from the financial community, which the broker believes will put pressure on the stock and its valuation multiples in the short to medium term, unless changes are made. of governance intervene in the form of new truly independent members on the Board of Directors and potentially new faces within the management team to launch a new dynamic. 2025 should be a much better year for Worldline, but it’s too far away and too uncertain at the moment. The price target has been cut to 15 euros…
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