Worldline muscling up in Payments

We are initiating Worldline with a Buy rating and a FV of EUR27. We are not only playing on both momentum in the electronic payments sector, where the group would like to strengthen its positions via organic growth and acquisitions, but also on the quality of Worldline's sales (75% recurring and benefits of Atos's distribution channel) and a margin recovery (TEAM plan and leverage on proprietary platform). At our FV on a 12m forward basis, the share would be trading on 2.4x sales and 12.3x EBITDA. In the event of M&A activity the impact on EPS in year 1 could stand at +35% (if 100% cash) or +8% (if cash + shares).

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