Aditya Buddhavarapu, an analyst from Bank of America Securities, reiterated the Sell rating on Paysafe (PSFE – Research Report). The associated price target is $18.00.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Aditya Buddhavarapu has given his Sell rating due to a combination of factors, primarily related to Paysafe’s recent financial performance and strategic decisions. The company’s preliminary Q4 results and FY25 guidance fell short of market expectations, which contributed to a significant drop in the stock price. Additionally, Paysafe announced a definitive agreement to sell its direct marketing payment processing business, a move aligned with its strategy to exit higher-risk merchant segments.
Aditya also highlighted concerns about execution risks associated with Paysafe’s turnaround efforts. Despite some positive steps, such as reducing its reliance on riskier business lines, the company faces challenges in improving its financial metrics and achieving projected growth targets. The updated price objective reflects these challenges, with a reduced valuation based on lower estimates and industry comparisons. Overall, the Sell rating reflects a cautious outlook due to these execution risks and uncertainties within Paysafe’s business strategy.
In another report released yesterday, UBS also maintained a Sell rating on the stock with a $17.50 price target.
PSFE’s price has also changed slightly for the past six months – from $19.360 to $19.110, which is a -1.29% drop .