* Money 20/20 industry conference supports positive view: We attended the Money 20/20 conference and hosted meetings with a selection of public and private companies. The conference highlighted four main themes: 1) growth prospects are sound and innovation and complexity are accelerating; 2) we see no meaningful risks to the role of Visa and Mastercard; 3) we see no short term risks of commoditisation; and 4) we believe improving acceptance is the key challenge
* Worldpay (Upgrade to Outperform, TP 300p): In its maiden full year results, Worldpay struggled to match high expectations. However, we believe industry growth prospects remain robust and market leaders like Worldpay are best positioned to take advantage of this growth and take market share. The US was the area of disappointment, but we believe newsflow will improve as we progress though FY16 and this will drive a re-rating. As a result, we upgrade to Outperform (from Neutral) and reiterate our 300p target price.
* Wirecard (Underperform, lower TP to €31 from €42): We think recent FY15 results raise as many questions as they answer. Specifically cash conversion was stronger than prior period, but reclassifications make the working capital components hard to understand. Meanwhile, we think the results reignite issues around the definition of net cash; some investors believe that non-current debts should be included, reducing the net cash to €118m vs the company definition at €536m. Until Wirecard can demonstrate stronger cash flows without reclassifications, we reiterate our Underperform stance.