Paysafe selloff brings attractive buying opportunity, says BTIG

BTIG is “struggling to find any good reason” for why Paysafe (PSFE) is trading down 25% today following its Q3 earnings report. The report was solid with top- and bottom-line beats and a reaffirmation of the fiscal 2024 guidance, the analyst tells investors in a research note. The firm says that if it had to nitpick at the report and outlook, it would point to a decelerated small business direct sales growth that also impacted gross margin, or the light Q4 implied revenue growth guidance. However, BTIG thinks investors “close to the story should appreciate that there is currently portfolio pruning efforts taking place where PSFE is removing high-risk customers from its platform.” As such, it thinks the 25% pullback presents an attractive buying opportunity, saying nothing in the Paysafe story has fundamentally changed. BTIG reiterates a Buy rating on the shares with a $26 price target