(Bloomberg) -- The rebound in payment processor Adyen NV is accelerating, with three banks turning bullish on the stock in the past week.

The fintech firm saw its stock jump as much as 3.6% on Friday after Citigroup Inc. analysts named it as a top pick in the payments sector and double-upgraded it to buy from sell. On Thursday, Jefferies International named Adyen among its favored European payment stocks while BMO Capital Markets gave it an outperform initiation earlier this week.

It’s been a notable turnaround after Adyen suffered a record wipeout in August that erased as much as half of its market value, following a slump in sales growth. The renewed analyst interest comes after the firm’s investor day last month helped restore market confidence and offered more visibility on its growth prospects.  

The stock surged the most since its trading debut following the event on Nov. 8, which saw the company unveil new targets for the next three years, a detailed blueprint for achieving them and committed to providing to quarterly reports. Adyen shares remain about 30% below a July peak.

“Expectations have come down from levels we had argued were too high,” Citigroup analyst Pavan Daswani said in a note to clients. Daswani, one of the few analysts to hold a sell rating with a street-low price target prior to Adyen’s stock collapse, now believes the meltdown was overdone.

As a payment processor which sits between a merchant and networks such as Visa Inc. and Mastercard Inc., Adyen competes with the likes of PayPal Holdings Inc. and Stripe Inc.. Along with European peers Nexi SpA and Worldine SA, its shares have rebounded in the past month, although the sector is seen to face pressure from global economic uncertainty. 

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Still, Citigroup is also positive on the payments sector for 2024. It sees the macro environment turning more supportive while growth in electronic transactions is set to continue. Daswani notes that while competition in the sector remains intense, Adyen offers better data capabilities and “high profitability” compared to rivals.

For some analysts, Adyen’s third quarter update, which revealed its net revenue increased by 22%, was crucial in showing that sales growth was accelerating again.

This growth is likely to “prove enduring” near-term, with positive tailwinds only just starting to play out, BMO Capital Markets analyst Rufus Hone said in a note to clients. Hone said Adyen’s growth targets appear to be “credible.”

--With assistance from James Cone.

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