Paysafe (NYSE:PSFE) surged in pre-market trading after announcing robust Q1 results. The payments platform reported revenues of $417.7 million, marking a 7% year-over-year increase on a constant currency basis, which surpassed consensus estimates of $408.2 million. Additionally, the company’s total payment volume increased by 7% year-over-year to $36.1 billion.
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The company reported adjusted earnings of $0.57 per diluted share in the first quarter, compared to $0.54 per diluted share in the same period last year, beating Street estimates of $0.55 per share.
PSFE reiterated its outlook for FY24, expecting revenues in the range of $1.68 billion to $1.7 billion, with adjusted EBITDA likely to be between $473 million and $488 million.
Analysts Bullish on PSFE
Four-star-rated Susquehanna analyst James Friedman described PSFE’s results as “its best quarter yet as a public company.” He added that the company’s first-quarter results surpassed expectations, with support from its iGaming business and usage of the digital wallet.
The analyst reiterated a Hold on PSFE but raised the price target to $16 from $14, implying an upside potential of 2.1% at current levels.
According to the TipRanks stock analysis tool, “Bulls Say, Bears Say,” analysts bullish on PSFE approve of the management changes that have led to “improved execution” of its strategy.
Is Paysafe Stock a Buy or Sell?
Analysts remain bearish about PSFE stock, with a Moderate Sell consensus rating based on one Hold and two Sells. Year-to-date, PSFE stock has increased by more than 20%, and the average PSFE price target of $13.87 implies a downside potential of 11.5% from current levels. These analyst ratings are likely to change following PSFE’s Q1 results today.
