In a report released yesterday, Andrew Harte from BTIG maintained a Buy rating on Paysafe (PSFE – Research Report), with a price target of $26.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Andrew Harte has given his Buy rating due to a combination of factors including Paysafe’s strategic actions and growth prospects. The decision to sell its non-core direct marketing business, which although high-margin, reduces exposure to higher-risk verticals and allows Paysafe to concentrate on its core growth assets, is seen as a positive move. Additionally, the company has increased its share repurchase program authorization, indicating confidence in its financial position and offering potential value to shareholders. Despite the weaker-than-expected preliminary results for the fourth quarter, which were impacted by portfolio pruning, the guidance for fiscal year 2025 growth rates, excluding dispositions, appears slightly better than consensus, suggesting potential for future improvement.
Moreover, Paysafe’s reiterated commitment to achieving a net leverage target of 3.5x by the end of 2026 provides further reassurance about its long-term financial strategy. Although preliminary dollar estimates for fiscal year 2025 have been adjusted downward due to the business sale, the underlying growth rates remain strong, supporting the Buy rating. Overall, these strategic initiatives and financial targets contribute to a positive outlook for Paysafe, leading to Andrew Harte’s Buy recommendation.
Harte covers the Technology sector, focusing on stocks such as Fiserv, Paysafe, and Microstrategy. According to TipRanks, Harte has an average return of 51.5% and a 66.67% success rate on recommended stocks.