ADYEY - Adyen: Not So Cheap Anymore But Still A Solid Long-Term Investment
2024-02-08 17:29:13 ET
Summary
- Adyen reported great results for the third quarter and set high growth targets for the years to come.
- As a result, the stock performed great in the last few months, but now the stock is trading for higher valuation multiples again.
- I still think Adyen is a solid long-term investment, but would be a little more cautious right now.
In October 2023, I published my first article about Adyen N.V. ( ADYEY ) and in the article I called the company (and stock) another fintech company that is undervalued. I rated the stock as a “Buy” and wrote in my conclusion:
Adyen: Not So Cheap Anymore, But Still A Solid Long-Term InvestmentAdyen is certainly a great business, and we can argue the company has a wide economic moat around its business. Despite short-term headwinds we also have reason to believe in double-digit growth rates in the years to come and Adyen might be undervalued at this point. However, to assume the stock is clearly undervalued, Adyen must grow at a high pace and assuming high growth rates for a long time is always a risky assumption.