The omicron variant caused problems for many companies, and Euronet (NASDAQ:EEFT) was no exception, as the company’s ATM business remains quite sensitive to European tourism. At the same time, though, I have to wonder whether the Street doesn’t pay too much attention to the ATM business and too little to the growing opportunities in the company’s cross-border payments operations.
Be that as it may, the shares have slipped another 5% or so since my last update, and that’s at least better than the performances at Fidelity National (FIS), Global Payments (GPN), Western Union (WU), none of which are great comps but at least directionally useful. I still believe Euronet can generate around 7% long-term revenue growth with FCF margins improving into the mid-teens over time, and that supports a double-digit annualized total potential return from here.
Read the full article at Seeking Alpha:
Euronet Offers Undervalued Leverage To Post-Pandemic Normalization And Growing Digital Payments
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