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Adyen N.V. (OTCPK:ADYEY) (OTCPK:ADYYF) shares perked up 2.9% in Wednesday morning trading in the U.S. after Morgan Stanley upgraded the European payments platform to Overweight from Equal-Weight on the basis of “increased confidence around the durability of growth,” both in the near-term and longer run.
For the short-term, analyst Adam Wood’s increased 2024 growth assumptions (volumes +34% and net revenue +26% for FY24) is supported by Netherlands-based Adyen’s (OTCPK:ADYEY) new merchants wins, he wrote in a note.
“Given Adyen’s increased investments in sales and distribution, we think strong new customer volume in FY23 underpins volume/net revenue growth well in FY24.”
And, based on his updated cohort analysis, Wood sees the company sustaining growth over the long-term, calling far volumes growing ~29% and net revenue growing ~23% out to 2028.
His Outperform rate diverges from the SA Quant system rating of Hold and aligns with the average sell-side analyst rating of Buy.
