Wirecard Gains as Goldman Forecasts Strong Revenue GrowthJonathan Morgan
Wirecard AG, a provider of software for online payments, rose to the highest price since its initial public offering in 2000 after Goldman Sachs predicted the stock will gain as the company builds business in Europe and Asia.
Wirecard jumped as much as 5.2 percent and was up 3.1 percent at 25.08 euros at 1:36 p.m. in Frankfurt, for the biggest gain among the 110 stocks on the HDAX Index. Trading volume was almost double the three-month daily average.
“There is a 65 billion-euro mobile commerce related opportunity for Wirecard spread across mobile carriers, retailers and other verticals,” S.K. Prasad Borra, a London-based analyst at Goldman Sachs, said in a note today. “We expect Wirecard to augment its strong presence in Germany and across Europe with continued expansion in Asia.”
Goldman raised its recommendation on Aschheim, Germany-based Wirecard to buy from neutral, and put the stock on its “conviction buy list.” Prasad Borra predicted the shares will rise to 38 euros in 12 months, a potential 56 percent gain from the closing price yesterday.