Jefferies analyst Trevor Williams maintained a Buy rating on Payoneer today and set a price target of $7.00.
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Trevor Williams has given his Buy rating due to a combination of factors that highlight Payoneer’s strong financial performance and growth potential. The company has demonstrated solid core growth, with revenue excluding interest income increasing by 15% year-over-year, aligning with its medium-term target for mid-teens growth. This growth is supported by an expanding take rate, driven by a shift towards higher take rate products and strategic pricing adjustments.
Despite a slowdown in volume growth, Payoneer’s adjusted EBITDA exceeded market expectations, showcasing the company’s operational efficiency. Additionally, the outlook for fiscal year 2025 has been raised, driven by strong growth in customer funds, which partially offsets the impact of lower rates. While there are some anticipated slowdowns in specific segments, such as SMB marketplaces and B2B revenue growth, the overall financial health and strategic positioning of Payoneer support the Buy rating.
In another report released today, Needham also reiterated a Buy rating on the stock with a $10.00 price target.