Adyen: Net Take-Rate Decline Offers Buying Opportunity

Adyen reported a limited first-quarter business update providing net revenue and volume figures which were good, in our view. Nevertheless, the stock dropped more than 10% at the market opening. Large price movements on the day of earnings releases are not uncommon for Adyen, typically driven by what we believe to be the market extrapolating short-term movements too far into the future. We surmise the market is getting hung up on the divergence of volume growth and net revenue growth, which suggests a declining net take rate. We maintain our EUR 1,660 per-share fair value estimate and wide moat rating. At a price/fair value of about 0.75 at the time of writing, we believe shares are attractive again.