This French stock could double in value

Investing.com - For the first half of the year, Worldline SA (EPA:WLN) has adjusted its forecasts for 2024 due to uncertainties surrounding consumer behavior in Europe for the coming months. The group now anticipates organic revenue growth between 2% and 3%, alongside an adjusted EBITDA ranging from €1.13 billion to €1.17 billion. These forecasts are lower than the previously established ones, which expected growth of at least 3% and an EBITDA of at least €1.17 billion.

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To achieve its free cash flow target of €230 million for the year, Worldline has implemented additional measures, such as cost rationalization, strict management of investment expenses, and improved working capital discipline. The group is also continuing its partnerships and restructuring efforts, aiming to reduce costs by about €220 million by 2025.

Despite these adjustments, Worldline has maintained its medium-term forecasts. In the second quarter, revenue increased by 1.7%, reaching €1.19 billion, in line with analysts' expectations. Nevertheless, CEO Gilles Grapinet noted an improvement in volumes since the beginning of the month, which is seen as a positive sign.

For the first half, the group posted a normalized EPS of €0.74. Adjusted EBITDA slightly decreased by 0.9%, to €514 million, while organic revenue growth increased by 2.1%, reaching €2.29 billion. Merchant services performed particularly well, with notable growth of 3.2%.

According to InvestingPro's models, the stock could rise by 94% to double in value. The fair value is estimated at €16.7. The consensus targets a value of €14.39.

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