Market Overview

Wirecard Investigation Sends Guggenheim To Sidelines

Share:
Wirecard Investigation Sends Guggenheim To Sidelines

Shares of German payments company Wirecard (OTC: WRCDF) are likely to come under pressure from external investigations after the Financial Times published reports alleging fraud and accounting malpractice, according to Guggenheim.

The Analyst

Guggenheim’s Jeff Cantwell downgraded Wirecard from Buy to Neutral and removed the previous €208 ($235.49) price target. 

The Thesis

Wirecard has termed FT’s allegations as being inaccurate, misleading and defamatory. The company announced that it will fully cooperate, but investors should consider the impact of the investigations by external parties like the Singapore police and potentially the German state attorney, Cantwell said in a Tuesday note. 

While the company could eventually be cleared of any wrongdoing related to the allegations, it is too early to predict the most likely outcome, the analyst said. A lack of clarity surrounds what the investigations could uncover and whether Wirecard can provide appropriate responses to every situation, he said. 

What is known is that the external parties involved in the investigation are powerful. Cantwell also highlighted that FT is continuing its reporting, ands said Wirecard has not yet finished disclosing “its side of events.”

Against the backdrop of these external investigations, the analyst recommends moving to the sidelines unil there is more clarity.

Price Action

Wirecard's over-the-counter stock was down 1.22 percent at $57.50 at the time of publication Tuesday. 

Related Links:

Guggenheim Downgrades PayPal On Likely Headwinds From Brexit, Payments Competition 

Raymond James Downgrades Square, Sees Nearly 30% Downside Potential 

 

Related Articles (WRCDF)

View Comments and Join the Discussion!

Posted-In: Analyst Color News Short Ideas Downgrades Eurozone Legal Markets Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
MRTXHC Wainwright & Co.Maintains257.0
NVDATruist SecuritiesMaintains672.0
NVDASusquehannaMaintains625.0
BLKBMO CapitalMaintains715.0
BLKDeutsche BankMaintains838.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com