Ingenico Group: Strong Q1 sales. FY organic sales growth target upgraded and still cautious.BUY, Fair Value EUR144 (+44%)
Ingenico Group has posted outstanding Q1 sales (+15% lfl, with growth across all regions) and upgraded its 2016 organic growth target (>=+10% vs. ~+10%), despite the difficult comparison base and the already known volume decline at one key GlobalCollect e-payment account in Asia Pacific. This publication should clearly reassure investors. We believe there is still room for further guidance upgrades during the year both in organic sales growth and EBITDA margin. Our FY estimates remain unchanged but we expect the consensus to make upward adjustments (we had the highest FY16 forecasts). We expect today's share price to be well in excess of EUR100. The strong profitable growth story is not yet fully valued. We maintain our Buy recommendation and FV of EUR144.
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