Euronet Worldwide, Inc. ( EEFT Quick Quote EEFT - Free Report) recently formed a joint venture (JV) with Spain’s Prosegur Cash. The latter is renowned for transporting valuables and cash management efforts.
Notably, the JV has been formed with 51% and 49% investment from Euronet and Prosegur Cash, respectively. Being managed jointly, the JV remains subject to regulatory approval.
The collaboration intends to offer a diverse range of ATM outsourcing services across most of the Latin American countries. It also aims to establish and expand independent ATMs across specific locations of the targeted region. For effective implementation of the JV, both Euronet and Prosegur Cash intends to extend a helping hand.
As for Euronet, the JV will make use of payments technologies of its REN and REV platforms. The wide array of Euronet’s ATM driving solutions and enhanced ATM fleet management system will also be utilized as part of the collaboration.
Regarding Prosegur Cash, the JV will benefit from the company’s well-established relationship with Latin American banks. At the same time, advanced cash-in-transit services and other comprehensive ATM related services will also contribute to the JV’s success. The sound knowledge that Prosegur Cash possesses about the local markets will continue to play a crucial role as well.
The JV seems to have come at an apt time for Latin American financial institutions and individuals. The reason can be attributed to the targeted market, which has been the host to around 300,000 ATMs. Also, people across the region are in dire need of hassle-free access to cash, as cash has remained the preferred mode of payments for consumers residing in such domestic economies.
Moreover, the recent move clearly highlights Euronet’s constant efforts to strengthen its presence in Latin America. And Prosegur Cash seems to be the apt partner toward boosting its footprint, courtesy of the former’s well-established presence across Latin America markets.
Time and again, Euronet has strived hard to delve deeper into the region through its Ria Money Transfer and epay segments. Notably, both the segments performed well in first-quarter 2021, driven by consistent digital media content growth, persistent network expansion initiatives, and continued mobile growth witnessed across certain markets.
The JV also reflects the company’s initiatives to bolster ATM outsourcing services and network participation agreement efforts. In February 2021, Euronet expanded its ATM network across Spain by adding eight more banks, thereby indicating the company’s efforts to strengthen footprint across Europe. Through similar endeavors, it has been rolling out enhanced financial services to consumers for establishing a robust global footprint.
The company’s growing product portfolio and improved alternative global payout capabilities are likely to position Euronet well for long-term growth.
Shares of Euronet have surged 53% over a year compared with the
industry’s rally of 15.2%.
The company has a Zacks Rank #5 (Strong Sell).
Stocks to Consider
Some better-ranked stocks in the same space are
Jefferies Financial Group Inc. ( JEF Quick Quote JEF - Free Report) , Columbia Financial, Inc. ( CLBK Quick Quote CLBK - Free Report) and Moody's Corporation ( MCO Quick Quote MCO - Free Report) . While Jefferies Financial Group sports a Zacks Rank #1 (Strong Buy), Columbia Financial and Moody’s carry a Zacks Rank #2 (Buy) at present. You can see . the complete list of today’s Zacks #1 Rank stocks here
Jefferies Financial Group, Columbia Financial and Moody’s have a trailing four-quarter earnings surprise of 341.27%, 28.73% and 22.28%, respectively, on average.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>