Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Euronet shares upgraded on diversification strategy benefits

EditorAhmed Abdulazez Abdulkadir
Published 17/05/2024, 09:24 pm
EEFT
-

On Friday, Wolfe Research adjusted its stance on Euronet Worldwide (NASDAQ:EEFT), raising the company's stock rating from Underperform to Peer Perform. The revision comes as Euronet's strategic moves are seen to potentially mitigate the challenges it faces in the European Union's ATM business due to the ongoing cash-to-card conversion trend.

Wolfe Research's decision is based on the belief that Euronet's increasing diversification, particularly through the integration of Piraeus, REN, and the expansion of its ATM network outside the European Union, will help counteract the structural headwinds impacting the EU ATM segment. This diversification effort is expected to play a crucial role in the company's ability to navigate the industry's shift towards digital payment methods.

Euronet Worldwide has been focusing on expanding its reach beyond the traditional cash dispensing services. The company's efforts to grow its ATM network outside the EU is part of a strategic initiative to diversify its revenue streams and reduce dependency on any single market or service.

The cash-to-card conversion trend has been a significant factor in the financial services industry, prompting companies like Euronet to adapt their business models. Euronet's strategy to diversify appears to be a response to this trend, aiming to secure its position in a rapidly evolving market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.