On Thursday, Euronet Worldwide (NASDAQ:EEFT), Inc. shares (NASDAQ:EEFT) received an optimistic update from DA Davidson, with the firm raising its price target on the stock to $136 from the previous $126, while reiterating a Buy rating. The revision follows Euronet's first-quarter earnings report, which surpassed both DA Davidson's and consensus estimates in terms of total revenue, adjusted EBITDA, and EPS.
Euronet's financial performance in the first quarter demonstrated a modest increase in total revenue compared to expectations, with the company's adjusted EBITDA and EPS notably exceeding forecasts. The company's management has confirmed its previous guidance for an annual growth rate of 10-15% in adjusted EPS for 2024, suggesting an EPS range of $8.21 to $8.58.
The upward adjustment in Euronet's stock price target is partly attributed to the strong results in the first quarter of 2024. Moreover, the anticipated modest EPS accretion from the recent acquisition of Infinitium Holdings has led DA Davidson to increase its adjusted EPS forecasts for the company.
DA Davidson's analyst cited the first-quarter earnings beat and the potential benefits from the Infinitium Holdings acquisition as key reasons for maintaining a bullish stance on Euronet. The firm's raised price target reflects confidence in the company's growth trajectory and its ability to deliver shareholder value.
Euronet Worldwide, a leading provider of electronic payment services, continues to show promising growth prospects. The company's robust first-quarter performance and the affirmation of its 2024 adjusted EPS growth forecast provide a positive outlook for its financial position moving forward.
InvestingPro Insights
Following the upbeat report from DA Davidson, it's worth noting that Euronet Worldwide, Inc. (NASDAQ:EEFT) shows signs of strategic financial maneuvers and market performance that could be of interest to investors.
An InvestingPro Tip highlights that management has been aggressively buying back shares, which often reflects leadership's confidence in the company's future. Moreover, analysts predict that the company will be profitable this year, which aligns with the positive outlook presented by DA Davidson.
From the real-time data on InvestingPro, Euronet's P/E ratio stands at 17.76, with an adjusted P/E ratio from the last twelve months as of Q1 2024 at 17.18, indicating a reasonable valuation relative to near-term earnings growth. Furthermore, the company has experienced a substantial 31.43% price uptick over the last six months, which may interest momentum investors. The InvestingPro Fair Value estimate is at $137.91, suggesting potential upside from the previous close price of $104.37.
For investors seeking a more comprehensive analysis, there are additional InvestingPro Tips available that can provide deeper insights into Euronet's financial health and market standing. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, and explore the full range of expert tips to guide your investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.