On Monday, Euronet Worldwide (NASDAQ:EEFT) received an upgrade from a Citi analyst from Neutral to Buy, with a new price target set at $120, a rise from the former $116 target. The financial services provider's stock has been observed to have pulled back significantly and is currently trading at approximately 10.6 times the firm's FY25 earnings per share (EPS) estimate. This valuation is juxtaposed with an anticipated compound annual growth rate (CAGR) of around 14% from FY23 through FY25.
The upgrade is based on growing confidence in Euronet's ability to meet or surpass the higher end of its financial outlook. The potential for more stability in the future was also cited as a contributing factor. Despite the stock's recent performance, its multiple remains near multi-year lows when compared to the market. This is noted even with the potential for improving stability and communication within the company.
The analyst highlighted that Euronet's execution and improved sentiment regarding earnings consistency could support the stock's appreciation in the near future. Additionally, the use of cash is expected to become a more significant factor as the company's balances grow.
InvestingPro Insights
As Euronet Worldwide (NASDAQ:EEFT) receives an optimistic upgrade from Citi, InvestingPro data and tips offer additional context for investors considering the company's stock. With a market cap of $4.73 billion and a P/E ratio standing at 16.89 for the last twelve months as of Q4 2023, the company exhibits sound financial health. The PEG ratio during the same period is notably low at 0.68, suggesting that the stock may be undervalued given its earnings growth rate.
Two InvestingPro Tips that stand out for Euronet Worldwide are the aggressive share buybacks by management and the company's trading at a low P/E ratio relative to near-term earnings growth. These actions indicate a management team confident in the company's value and prospects. Furthermore, the fact that Euronet's liquid assets exceed its short-term obligations provides additional financial stability, which is crucial for investors looking for secure investment opportunities.
Investors seeking further insights can find additional InvestingPro Tips on the company's profile, which includes predictions that Euronet will be profitable this year and has been profitable over the last twelve months. For those interested in diving deeper into the company's financials and stock potential, InvestingPro offers a more comprehensive analysis, and by using the coupon code PRONEWS24, investors can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.