Analysts at Jefferies have adjusted their price target for Paysafe (PSFE, Financial), lowering it from $14 to $13 while maintaining a Hold rating on the stock. This revision is part of a broader evaluation highlighted in Jefferies' "Payments Playbook" note for May, which discusses company-specific themes and strategies following the first quarter. The report aims to provide insights into the firm's future positioning within the payments sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Paysafe Ltd (PSFE, Financial) is $16.05 with a high estimate of $22.00 and a low estimate of $12.00. The average target implies an upside of 33.53% from the current price of $12.02. More detailed estimate data can be found on the Paysafe Ltd (PSFE) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Paysafe Ltd's (PSFE, Financial) average brokerage recommendation is currently 2.9, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Paysafe Ltd (PSFE, Financial) in one year is $18.81, suggesting a upside of 56.49% from the current price of $12.02. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Paysafe Ltd (PSFE) Summary page.
PSFE Key Business Developments
Release Date: May 13, 2025
- Revenue: Declined by 4% to $401 million; increased 5% organically.
- Adjusted EBITDA: $95.2 million with a margin of 23.7%.
- Unlevered Free Cash Flow: $57 million with a 60% conversion of adjusted EBITDA.
- Adjusted Net Income: $20.9 million or $0.34 per share.
- Merchant Solutions Volume: Increased by 11% to $34.3 billion.
- Digital Wallet Volume: Increased by 5% to $5.9 billion.
- Net Leverage: Increased to 4.9 times.
- Share Repurchase: 613,000 shares in Q1 and 693,000 shares in April, totaling approximately $20 million returned to shareholders year-to-date.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Paysafe Ltd (PSFE, Financial) reported a 5% organic revenue growth in Q1 2025, driven by strong growth from existing customers and new sales initiatives.
- The company signed over 100 enterprise-level contracts in Q1, expanding its reach across gaming, Latin America, and broader e-commerce verticals.
- The launch of the PagoEfectivo wallet in Peru is expected to capitalize on the high-growth payments landscape, enhancing Paysafe's market presence in Latin America.
- Paysafe Ltd (PSFE) expanded its partnership with Fiserv, integrating Clover Capital Solution to provide SMBs with improved access to capital.
- The company reported a 31% growth in e-commerce and over 50% growth in iGaming year-over-year, indicating strong performance in key verticals.
Negative Points
- Paysafe Ltd (PSFE) reported a 4% decline in reported revenue to $401 million, impacted by inorganic headwinds from FX, interest, and divestiture.
- Adjusted EBITDA decreased to $95 million from $112 million in the previous year, with a margin decline due to lower interest revenue and business mix.
- The SMB segment experienced flat performance, with higher attrition rates and slower ramp-up in direct sales impacting growth.
- Net leverage increased to 4.9 times, driven by the divestiture of the direct marketing business and the strengthening of the euro.
- The company faces challenges in optimizing the SMB team and go-to-market channels, with ongoing efforts needed to improve resource allocation and lead generation.
