Tuesday, Benchmark reaffirmed its Buy rating on Payoneer (NASDAQ:PAYO), with the price target remaining at $7.00. The firm highlighted that Payoneer's stock has experienced a nearly 15% decline since the company issued its fourth-quarter report on February 28. The report included guidance for fiscal year 2024 revenue and adjusted EBITDA that fell short of consensus estimates by approximately 4% and 11%, respectively.
The analyst noted the contrast between Payoneer's performance and the broader fintech market, which has seen gains during the same period. Specifically, the Global X FinTech ETF (FINX) reported a return of over 7%, outperforming the S&P 500's return of 2.7%. This divergence has occurred even as fintech stocks have generally been rallying.
Payoneer's current valuation stands at roughly 5.6 times its estimated enterprise value to EBITDA for fiscal year 2025. This valuation represents a significant discount when compared to its fintech peers. According to the firm, this has made Payoneer's stock even more of an outlier within the fintech sector.
The fintech company, which specializes in cross-border payments, has seen its share price adjust after revealing its future financial expectations. Despite the recent downturn in Payoneer's share value, Benchmark's stance suggests confidence in the company's long-term prospects.
InvestingPro Insights
As Payoneer (NASDAQ:PAYO) contends with a volatile market environment, insights from InvestingPro serve to provide a deeper understanding of the company's financial health and stock performance. With a market capitalization of $1.73 billion and an adjusted P/E ratio for the last twelve months as of Q4 2023 standing at 17.89, Payoneer's valuation metrics are crucial for investors considering the stock. The company's robust revenue growth of 32.42% over the same period is indicative of its strong market position and operational efficiency, as reflected by an impressive gross profit margin of 85.29%.
InvestingPro Tips highlight that while Payoneer's stock has struggled over the past month with a 14.73% decline, analysts remain optimistic about the company's profitability for the year. Additionally, Payoneer has been profitable over the last twelve months, which may reassure investors of its financial stability. It's important to note, however, that the company does not currently pay a dividend, directing its capital towards growth and expansion strategies instead.
For those seeking further insights, InvestingPro offers additional tips on Payoneer, which could be accessed for more in-depth analysis. Interested investors can use the coupon code PRONEWS24 to receive an extra 10% off a yearly or biyearly Pro and Pro+ subscription. This could be an invaluable tool for those looking to make informed investment decisions in the dynamic fintech sector.
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