MILAN, Feb 8 (Reuters) - Adyen's shares on Thursday were on track to recover losses suffered during a rout in August 2023, as stronger than expected second-half earnings helped put the Dutch payments processor back in favour with investors.

Adyen shares hit their lowest in more than three years in August, in a drop that wiped off almost 18 billion euros ($19 billion) from its market cap after weak earnings raised concerns about its valuation and an industry price war.

"Adyen is quickly returning to 'must own' territory," wrote Barclays analysts James Goodman. "Post the H2 beat, clearly the margin target is looking easily achievable and we expect the debate to shift to the magnitude of upside".

It was last up more than 21% on the day on Amsterdam's AEX index and up 139% from lows in October, when the shares extended losses as part of a sector-wide selloff. Italian rival Nexi was up 1.5%.

Jefferies analyst Hannes Leitner said Thursday's stock price gains for Adyen were driven by relief, as investors turn positive about 2024 and interpret last year's drop in Q2 as more of a one-off.

"You have to bear in mind the scarcity value," he said, adding that there are few large-scale companies growing at Adyen's rate. "People want to own this.”

“Definitely a lot of clients are interested.” ($1 = 0.9303 euros) (Reporting by Danilo Masoni, additional reporting by Elizabeth Howcroft; Editing by Amanda Cooper and Jane Merriman)