Bank of America downgraded Nexi to Neutral from Buy after the Italian payments company reported weak fourth-quarter results and outlined a slower growth trajectory. The bank expressed skepticism about Nexi's plan to return to mid-single-digit revenue growth by 2028, citing execution challenges in merchant services and intensifying competition from newer payment providers.

Nexi expects revenue growth of about 2% in 2025 before accelerating, but Bank of America estimates growth closer to 3.4% by 2028. The brokerage also lowered its projections for card transaction value growth in Nexi's markets to 5-6% annually between 2026 and 2030, down from the previous 10% estimate. Additional pressure on margins is expected as Nexi increases spending on product development, sales force expansion, and artificial intelligence capabilities.

Bank of America cut its revenue estimates for 2026 through 2028 by 1-3% and reduced adjusted earnings per share forecasts by 6-17% over 2026 to 2029. Free cash flow expectations were lowered by 8-17% over the same period, reflecting higher investment spending and cash taxes. The bank also removed share buyback assumptions from its model and lowered its price target to €3.1 from €5.1, citing limited upside as investors weigh execution risks and slower growth prospects.