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Evercore ISI upgraded Adyen N.V. (OTCPK:ADYEY) (OTCPK:ADYYF) shares to Outperform from In Line on Monday, "given potential for accelerating payment volume growth and substantial EBITDA margin expansion tied to operating leverage and renewed expense discipline."
Platforms volume, in particular, could potentially double by next year to €235B ($252.5B), "as partnerships with Lightspeed, Olo, and Shopify continue to ramp and most of the negative effects from eBay have already occurred," analyst David Togut wrote in a note.
Shares of the European payments platforms gained 1.5% in Monday morning trading in the U.S.
Further stoking his growth expectations, non-personnel expenses have reached the lowest level as a percent of net revenue since the back half of 2021, Togut pointed out, informing "our belief that Adyen can reach 60%+ EBITDA margins by 2H26, up from 48% in 2H/23."
His Outperform rate disagrees with the SA Quant system rating of Hold and aligns with the average Wall Street analyst rating of Buy.