Paysafe (PSFE) PT Raised to $23 at Susquehanna

Susquehanna analyst James Friedman raised the price target on Paysafe (NYSE: PSFE) to $23.00 (from $16.00) while maintaining a Neutral rating.

The analyst commented: "On many metrics, PSFE delivered its best quarter yet as a public company, with Merchant Solution revenue growing 13% (vs. 11% last quarter), iGaming delivering over 50% volume growth in North America, and the company closing 18 iGaming deals. The Digital Wallets segment is also doing well, as ARPU was up 6% and average transactions per user was up 20%. These results led management to raise revenue guidance for the year. It is clear that the company's investments in improving their sales team and optimizing their portfolio have been paying off, and we are raising our price target to $23 based on 6.4x '25 EV/EBITDA, though we are maintaining our Neutral rating based primarily on business mix. 2Q's above-expectations results were supported by strength in e-commerce, particularly iGaming. Additionally, the company is beginning to see the payoff from portfolio optimization investments made in 4Q23 and 1Q24, and they are ahead of schedule in terms of reaching some of their yearly goals. As a result, they are raising guidance for the full-year."

You May Also Be Interested In

• Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating
• BofA Securities Resumes American Eagle Outfitters (AEO) at Underperform
• DA Davidson Reiterates Buy Rating on Dynatrace Inc. (DT) on Agreement to Acquire Arize