Redburn Atlantic has revised its price target for Adyen (ADYEY, Financial), lowering it from EUR 1,600 to EUR 1,550, while maintaining a Neutral rating on the stock. The firm has expressed that the payments sector is often misinterpreted, despite its attractive valuation, minimal earnings risk, and robust cash returns.
In a recent analysis, Redburn highlights Mastercard and Toast as its preferred choices within the sector. It argues that concerns about cyclical impacts on payment businesses are exaggerated. Redburn explains that these businesses are driven by nominal consumption, suggesting that any upcoming recession would affect unit sales rather than nominal terms.
In light of the perceived economic slowdown, Redburn has adjusted its estimates for companies within the payments industry, reflecting a cautious but strategic outlook on future performance.
