Summer Travel to Italy Has Been Positive to Nexi's Volumes, but Other Regions Lagging

Narrow-moat Nexi reported third-quarter underlying revenue including Nets of EUR 598.9 million, up 10% versus the same period a year ago. EBITDA grew 15% to EUR 316.7 million on a good cost control performance through the quarter. Volumes have started to recover throughout the summer, but the current outlook across Europe suggests a tougher fourth quarter again. Management reiterated its 10% revenue and 11%-13% EBITDA growth guidance for this year. We maintain our EUR 18 per share fair value estimate. Shares are undervalued.