This French Stock Could Double in Value

Worldline SA has revised its forecasts for 2024 due to uncertainties around consumer behavior in Europe. The company now expects organic revenue growth of 2% to 3%, with an adjusted EBITDA between €1.13 billion and €1.17 billion. These projections are lower than previous estimates, which anticipated at least 3% growth and an EBITDA of at least €1.17 billion.

To reach its free cash flow target of €230 million this year, Worldline is implementing measures such as cost rationalization, careful management of investment expenses, and improving working capital efficiency. The company is committed to ongoing partnerships and restructuring efforts, aiming to cut costs by approximately €220 million by 2025.

Despite these updates, Worldline has upheld its medium-term forecasts. In the second quarter, revenue rose by 1.7%, totaling €1.19 billion, in line with analyst expectations. CEO Gilles Grapinet pointed out a positive trend in volumes since the start of the month.

For the first half of the year, the group reported a normalized EPS of €0.74. Adjusted EBITDA experienced a slight decline of 0.9%, amounting to €514 million, while organic revenue growth was recorded at 2.1%, reaching €2.29 billion. Merchant services showed particularly strong performance, growing by 3.2%.

There are indications that the stock could potentially see a rise of 94%, with a fair value estimated at €16.7, while the consensus places it at €14.39.

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