Paysafe (PSFE) PT Lowered to $19 at RBC Capital

RBC Capital analyst Daniel Perlin lowered the price target on Paysafe (NYSE: PSFE) to $19.00 (from $21.00) while maintaining a Sector Perform rating.

The analyst commented: "While the company continues to make improvements cleaning up its overall merchant portfolio, completing the sale of its direct marketing business, we also acknowledge the model creates some optical noise in FY25, but underlying organic growth illustrates the transformation is beginning to take hold. In addition, management confirmed it has received unsolicited takeover interest and that the Board, in conjunction with its financial & legal advisors, is reviewing all possible proposals.

Incorporating the results and guidance, we are adjusting our FY25 rev/adj. EBITDA estimates to $1.712B/$466M from $1.825B/$540M, respectively. We are also establishing FY26 rev/adj. EBITDA estimates of $1.814B/$520M. As we roll our valuation forward to FY26e, we are also reducing our price target to $19, from $21, or 6.5x FY26e EV/EBITDA, which is reflective of the company’s stronger go-to-market performance resulting from increased investments and strategic initiatives to drive value-added services, counteracted by the noise associated with derisking the portfolio."

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