Stock of the Week: Adyen
Weekly spotlight: news, opportunities and insights at a glance!
Welcome to this 6th edition of “Stock of the Week”. You can find all the previous stocks of the week and 250 other articles on my main page.
Here are the links to the 4 previous “Stocks of the Week” as well
This week, “Stock of the Week” focuses on Adyen. "After impressive results, the stock surged to price levels not seen since 2022. But can it climb even higher? What is the outlook? Let’s dive in!
Let me know what you think of Adyen in the comments!
One-Pager
The stock at a glance!
Recent news
Two years ago, Adyen experienced a notable contraction in its profit margins, which initially led to a significant sell-off in its stock as investors reacted to what appeared to be deteriorating financial health. However, this margin contraction was largely misunderstood by the market because it was primarily driven by strategic investments for future growth rather than operational inefficiencies or declining business performance.
Adyen has been actively forging partnerships across various sectors to expand its payment processing capabilities, enhance its service offerings, and penetrate new markets. Here is a not exhaustive list of the partners: Paypal, Affirm, Klarna, Nayax, Zalando, Shopify, eBay, …
Here are some links where you can find more information about these partnerships
Last earnings report
Adyen reported full-year core earnings that surpassed market expectations, leading to a significant increase in its share price. For the year, their EBITDA rose by 34% to 992M€, exceeding the consensus estimate of 965M€. Their Q4 performance also exceeded forecasts.
Adyen is forecasting higher net revenue growth and continued EBITDA margin expansion into 2025.
Analysts’ recommendations
Feb, 14. JP Morgan. Buy. 1,659€ —> 2,800€
Feb, 14. Deutsche Bank. Buy. 1,850€ —> 2,250€
Feb, 14. Berenberg. Hold. 1,500€ —> 1,700€
Feb, 14. UBS. Buy. 1,800€ —> 2,050€
Feb, 14. Jefferies. Buy. 1,797€ —> 2,152€
Feb, 14. Goldman Sachs. Buy. 2,200€
My analysis
Adyen is one of the most interesting European stocks. It was by the way in my 12 stock picks for 2025
Adyen’s competitive advantage stems from its unified global payments platform, which seamlessly integrates payment processing, risk management, and data analytics, empowering businesses to scale efficiently across diverse markets with a single solution
With a strong 28% performance in 2025, the stock is now richly valued. The current PE ratio stands above 50x, while the 2026 PE for next year is already around 40x
While 25% annual growth is expected over the coming years, the current valuation appears stretched. A period of consolidation could provide a healthier base before further gains. However, in the current momentum-driven market, the stock could continue to push higher despite its rich valuation
Technical analysis
I have defined three buying zones that I find interesting for long-term investments during pullbacks. While these zones may not be reached, I am prepared for a market (or stock) consolidation to seize long-term opportunities. For me, this approach offers a better risk/reward ratio.
Of course, this is just my opinion, and I am sharing it with you, but each investor should decide on their own investment style. With that said, here are my three buying zones for Adyen.
Buying zone 1. 1,620€
Buying zone 2. 1,440€
Buying zone 3. 1,240€
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Used source: Marketscreener.com. Affiliate link just here
Great article, great stock. Started a 2% position on the dip 2 years ago. It’s now 130% up and have no plans on selling.
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