William Blair analyst Christopher Kennedy has maintained their bullish stance on PAYO stock, giving a Buy rating today.
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Christopher Kennedy has given his Buy rating due to a combination of factors that highlight Payoneer’s potential for growth despite current market challenges. The company’s September-quarter revenue and adjusted EBITDA exceeded expectations, indicating strong operational performance. However, the stock price has declined, which Kennedy attributes to broader macroeconomic uncertainties and conservative guidance for the upcoming quarter.
Despite these challenges, Kennedy sees value in Payoneer’s current valuation, which is significantly lower than recent fintech transactions. The company is projected to achieve substantial EBITDA growth by 2025, and its shares are trading well below their initial public offering price. Kennedy believes that Payoneer’s strategic focus on larger, more profitable customers and its ability to drive profitability in its core business are key factors that support the Buy rating.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $7.00 price target.