Euronet Buys 700 ATMs From Bank Of Ireland; Street Sees 5% Downside

Euronet Worldwide, Inc. announced that it is acquiring Bank of Ireland’s 700 non-branch ATMs located in the Republic of Ireland. Shares of the global electronic payments’ provider closed 2.3% higher on Wednesday.

Per the terms of the agreement, Euronet (EEFT) will become the owner of the ATMs on Feb. 28, 2021. Furthermore, the company has decided to re-brand the acquired ATMs with Euronet branding elements.

Euronet will “assume full responsibility for managing the acquired ATM network and integrating it with the company’s existing ATM estate in the Republic of Ireland. In addition, Euronet plans additional investments to upgrade and enhance the ATMs with modern technology and new functionality to the benefit of consumers.” (See EEFT stock analysis on TipRanks)

On Dec. 18, Northland Securities analyst Michael Grondahl raised the stocks’s price target to $150 (6.5% upside potential) from $125 and maintained a Buy rating. The analyst said, “the ATM outlook is improving with the news of the vaccine. While many European countries are beginning new lockdown orders, a significant tourist recovery is expected at some point in 2021 and EEFT will be ready to pickup with increased travel.”

Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 3 Buys and 2 Holds. The average price target stands at $133.80 and implies downside potential of about 5% to current levels. Shares have declined 10.6% year-to-date.