UPDATE: Canaccord Genuity Downgrades Paysign Inc. (PAYS) to Hold

(Updated - December 23, 2020 6:53 AM EST)

(updating comment)

Canaccord Genuity analyst Austin Moldow downgraded Paysign Inc. (NASDAQ: PAYS) from Buy to Hold with a price target of $5.00, (from $9.00).

The analyst comments "After lowering our estimates following the Q3 miss, we are again making downward estimate revisions based on a closer look at the plasma and pharma segments. In plasma's case, we expect COVID-19's negative impact on donation volume to continue further while being coupled with a few longer-term adverse trends such as decreasing collections and revenue per center. On the pharma side, the company's shift toward new patient affordability solutions and HUB providers is causing us pause as we are uncertain how several of the top-line metrics will be impacted. In particular, we lack visibility into the size of these contracts, the pace of new signings, and the revenue conversion rate associated with the more heavily weighted fee-based model. Despite the near-term trends, plasma should continue to provide a solid baseline of ~15% revenue growth annually after an expected rebound in 2021. This above-industry growth rate assumes success among new client wins, which has admittedly slowed over the last year. We estimate a pharma revenue CAGR of 14% but think it could be accelerated if the company finds success expanding its new patient affordability services. And our thesis remains intact around the ability to spin up new verticals utilizing the same payment processing backbone. Some of this is already starting across corporate and employee incentives, but it is too early to forecast. Given our tempered expectations and the uncertainty surrounding some strategy shifts, we are lowering our price target and downgrading the stock to HOLD with an opportunity to get more constructive as management proves out its new business lines and produces a couple quarters of solid performance."

For an analyst ratings summary and ratings history on Paysign Inc. click here. For more ratings news on Paysign Inc. click here.

Shares of Paysign Inc. closed at $4.78 yesterday.

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