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Adyen shares soar on more realistic growth targets

Adyen shares soar on more realistic growth targets

Shares in Adyen jumped 35% on Thursday on news that the payment processor has lowered its growth targets for the next three years, providing investors with more clarity over its medium-term future.

In August, the Dutch outfit saw EUR12 billion wiped off its value in a single day after posting disappointing first half results.

With investor confidence shaken, the firm's shares continued to spiral further, closing yesterday at EUR695.70, down from EUR1472 before the H1 results.

Yesterday, at the request of shareholders, Adyen held an investor day, where it tempered net sales expectations, but provided a more specific timeframe of three years and a lower than feared downturn.

The processor now says it expects net sales to grow annually between a low to high twenties percentage, compared to its previous forecast percentage growth between mid-twenties and low thirties.

In an analyst note, JP Morgan wrote: "Despite guidance being lowered, we see this as a positive as it's more realistic."

Adyen CFO Ethan Tandowsky also moved to placate investors by promising more communication, saying that “we understand that more updates about how the business is developing along the way would helpful".

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