Paysafe’s Performance Under Macroeconomic Uncertainties: A Hold Rating Amid Mixed Sector Momentum

Paysafe (PSFE – Research Report), the Technology sector company, was revisited by a Wall Street analyst on May 20. Analyst Frederic Boulan from Bank of America Securities reiterated a Hold rating on the stock and has a $14.30 price target.

Frederic Boulan has given his Hold rating due to a combination of factors impacting Paysafe’s performance. The overall earnings season was challenging, with a significant portion of companies missing revenue expectations, which reflects broader macroeconomic uncertainties. Although the software sector showed stable growth, the IT services segment, which includes payments, experienced a decline, contributing to a cautious outlook.
Additionally, the uncertainty surrounding US tariffs has had a mixed impact on the sector, though Paysafe has not been significantly affected. The mixed momentum in software and the ongoing softness in IT services suggest a prudent approach, leading to a Hold rating. Boulan’s analysis indicates that while there is potential for future growth, current market conditions warrant a neutral stance on Paysafe’s stock.

In another report released on May 13, RBC Capital also maintained a Hold rating on the stock with a $19.00 price target.

PSFE’s price has also changed moderately for the past six months – from $16.990 to $12.440, which is a -26.78% drop .