Worldline: Release Doesn't Have Strategy Reset We Hoped For

Worldline reported third-quarter top-line figures in line with expectations and confirmed full-year 2024 guidance, but still left much to be desired. In particular, we missed seeing a proper new strategy and vision for Worldline. The message of rebounding and refocusing underplays the challenges Worldline has faced this year, as a one-off, without cleaning the slate properly. We maintain our EUR 22 per-share fair value estimate and narrow moat rating, but we emphasize our Very High Morningstar Uncertainty Rating. We agree with management that the underlying assets are stronger than the current share price reflects, but are concerned that they fail to take their challenges, and the communication of these challenges, seriously. The depressed valuation demands a decisive new strategy.