(new: share price, experts as well as more details and background)
FRANKFURT (dpa-AFX broker) – The Wirecard shares (Wirecard) reduced their initially significant drop of more than seven percent on Monday. Most recently, the discount amounted to 3.12 percent at EUR 92.89, whereby the shares of the payment processor were still the bottom of the moderately yielding DAX (DAX 30).
Wirecard does not come to rest. According to the prosecutor, the board of directors is under investigation. It is about the suspicion of market manipulation. The group’s business premises were searched. Wirecard agreed to cooperate with the investigators.
The next steps could be further lawsuits by investors against Wirecard and dismissal of CEO Markus Braun, a trader said in the morning and advises investors to be careful with the share.
This type of news is definitely negative for the stock, analyst Stephane Houri from investment bank Oddo BHF wrote in a recent study. Fundamentally, nothing has changed. The expert left his investment vote on “neutral” with a target price of 105 euros.
At the Dax Group, central questions remained unanswered, even after a special audit on alleged accounting fraud. In their report on the financial years 2016 to 2018, KPMG’s auditors reported that essential documents were missing – mainly on business with third-party companies. For this reason, the KPMG auditors could not determine whether the corresponding bookings also correspond to real sales.
Before the report was published, Wirecard had explicitly emphasized that there was no evidence to support the publicly alleged manipulation of the balance sheet. The share price then recovered sharply to more than EUR 140, but then plummeted after the publication of the KPMG report, as investors did not consider the company to be completely relieved of the allegations of balance sheet manipulation in the light of the statements of the auditors.
Provided that Wirecard’s balance sheet is not tarnished by violations of the rules, the share appears to be the cheapest compared to the competition from Adyen (Adyen BV Parts Sociales), Wordline and Nexi in terms of expected operational growth, Oddo expert Houri wrote. However, it is currently too early to be able to say whether it is actually inexpensive or whether the price only fairly reflects possible balance sheet irregularities.
By mid-May, the Wirecard share price had slumped by almost half to 72 euros. Recently, the papers had recovered a bit, but no longer made the leap above the 100 euro mark./ajx/mis/jha/
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