Investors don’t usually cheer when a company scales back its ambitions. But a newfound dose of realism seems to have done the trick for Adyen (NL:ADYEN).
Shares in the Dutch payments provider soared 36% Thursday, after it cut sales-growth and profitability targets. This reversed some of the steep losses the stock sustained in August after it reported a sales slowdown.
Adyen and its European financial-technology peers have suffered this year as investors have questioned high valuations in light of weak growth. But analysts said Adyen’s new stance should reassure investors about its strategy, including plans to recover lost market share in the U.S.