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TD Cowen, on Friday, upgraded the shares of Adyen N.V. (OTCPK:ADYEY) to Outperform from Market Perform. Analyst Bryan Bergin, citing the payment technology company’s lay to rest prior concerns on growth compression and competitive commoditization, indicated a strong vote of confidence in Adyen’s future prospects.
Categorizing Adyen’s H2 2023 earnings report as a “critical clearing event,” the sell-side analyst highlighted a newfound confidence in a potential stabilization and recovery trend, contrasting the perception of the company’s 3Q update as a temporary setback.
ADYEY surged 4.5% in morning trading following the upgrade, as investors reacted positively to the firm’s latest performance.
Furthermore, Adyen is now positioned to drive outsized growth compared to the industry through 2026 while maintaining strong earnings and cash flow. Although the company’s EBITDA margin for the full year retreated to 46% from 55% in 2022, Bergin suggested that consensus estimates could see further upwards revision. Additionally, Wall Street’s projections for net revenue growth, which previously hit a low-20s mark, are anticipated to move higher as well.
Bergin’s Outperform rating counters the SA Quant system’s Hold rating and is in line with the average Wall Street analyst rating of Buy.
