NEXPF - Nexi: The European Paytech Has A Great Future Ahead

2024-02-01 01:07:47 ET

Summary

• Nexi is a fast-growing company in the digital payments sector, from a "small" national company it became a leading player in Europe thanks to strategic M&A work.
• The Company has shown in the last years continuous growth in its financials, thanks to a strongly entrenched position in its markets and a favorable tailwind in its business.
• I think NEXPF is now ready to begin reaping the advantages of the work and the investments of the last years.
• I begin the coverage by assigning a Buy to Nexi, thanks to the good expected revenue growth and moreover its solid market positioning. I find the current price a fair point of entry in the company.
• If the company proves that it can maintain (or improve) its growth estimation, the recommendation could further improve in the future.

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Investment Thesis

Nexi ( NEXPF , NEXXY ) was, until a few years ago, a relatively small Italian company, operating in a sort of "niche", taking care of digital payment business only in the national market. Starting from 2021 it has started a revolutionary work of internationalization with important acquisitions on the European market, becoming one of the major players in that area.

I consider Nexi a really interesting company in a fast-growing sector (digital payments), with a special focus on a deeply under-penetrated market (the European one) and in a great position from where it is ready to reap the next years of growth, thanks to its strong entrenched business model.

With this analysis, I want to demonstrate how Nexi can be a good addition to the portfolio of those who operate with a long-term buy-and-hold strategy, thanks to the good growth expectations paired with the excellent solidity of the business model. I especially like the strong positioning of Nexi in its markets (both by business type and geographical area), and I find the financial history of the company a good example of steady but continuous growth, and a strategic management of investment....

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