|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||0.00 - 0.00|
|52 Week Range|
|PE Ratio (TTM)||46.34|
|Dividend & Yield||0.18 (0.20%)|
|1y Target Est||N/A|
Here are three European players in the payment-services sector that one analyst says are the best bets for investors. A $10 billion deal this month has helped bring excitement to the growing sector.
Payment processing companies are gaining investor interest as the recent Vantiv-Worldpay dealshines a light on the sector. On July 8th, Vantiv (VNTV), the second largest merchant acquirer, offered to buy Worldpay (WDDYF) for $10 billion, an approximately 20% premium to its pre-deal trading value. Worldpay was a spin out from British bank Royal Bank of Scotland to private-equity firms Bain Capital and Advent International in 2010, and subsequently went public in 2015.
“The disappearance of cash and checks is the main driver,” says Richard-Maxime Beaudoux, a Paris-based senior equity research analyst at investment bank Bryan, Garnier & Co. Global noncash transactions jumped by 11% to $433 billion in 2015, the most recent data available, and more strong growth is ahead, according to Capgemini, the consulting giant. A second key driver for the payment services sector is e-commerce ramping up worldwide, says Beaudoux—and another is a steady stream of mergers and acquisitions. Meanwhile, Beaudoux is advising Worldpay’s shareholders to “take their money and run,” as he doesn’t expect competing bids and says the deal terms look generous.