AG Edwards downgraded Euronet Worldwide (EEFT
) to hold from buy, citing valuation.
Analyst Timothy Willi believes Euronet Worldwide is capable of generating earnings per share (EPS) growth of 25% over the next several years. He thinks its ATM outsourcing business will continue to see strong growth in Asia, India, Central and Eastern Europe. In addition, he believes its pre-paid business should see accelerating growth over the next 24 months as U.S. and German top-up markets accelerate. While the affinity for long term fundamentals remains intact, he thinks upside from last night's closing stock price is modest, and he prefers to wait for a more attractive entry point.