Worldline drops further as limited visibility worries investors
** Shares in Worldline WLN.PA drop around 12% to new record low, extending Friday's losses, with analysts pointing to uncertainty overthe French payment group's financial recovery and management changes
** "Investors are probably uncertain about the turnaround which really depends on new CEO and top management," Jefferies analyst Hannes Leitner says, adding that Deputy-CEO Marc-HenriDesportes is seen as partly responsible for the group's current issues
** Worldline said on Friday Desportes will replace long-time CEO Gilles Grapinet for an interim period, as the company issued its third profit warning within a year
** Today's share drop could also be caused by late withdrawal from funds that were not able to sell their stake on Friday, due to liquidity constraints, Leitner says
** "While this is a first step, the road to recovery is likely to be long and arduous," Stifel analysts say in a note on Friday referring to Grapinet's departure
** They cut their PT on the stock by 36% to 8 euros and expect further changes, that could include further impairments, more management changes and review of its businesses
** The stock fell 15% on Fridayand including session's losses, shed 59% since the beginning of the year
Reporting by Alban Kacher
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
