PaySafe is well-positioned to make profit.
PaySafe Limited (PSFE) is no exception to the rule that companies involved in digital payments and e-commerce are ideally positioned to gain from expanding consumer trends. The company also runs an iGaming payment system that combines digital wallets, credit cards, and cash to allow customers to readily access funds for online gaming and other purchases. (For further information, see TipRanks’ PSFE stock analysis.)
In a bullish analysis on the company, Evercore ISI’s four-star analyst David Togut noted that PaySafe has “attractive, low double-digit organic revenue” in the long run and plays a key role in the iGaming business. Togut established a Buy rating and a $16 price target on the stock, representing a 30.51 percent potential upside from the current valuation.
Togut noted that online payments account for 75 percent of the company’s income, and that the specialized payments platform will continue to gain from the consumer shift away from brick-and-mortar retail.
PaySafe’s “strong risk management operation” and high rankings in various key performance indicators, including cash network, stored digital wallet value, and number of linked independent merchants, were also lauded by him.
Togut was also quick to point out that PaySafe will benefit from the growing iGaming business in the United States, since numerous states have recently enacted legislation legalizing sports betting. Arizona, Maryland, New York, and Wyoming are among such states.
Similarly, he stated that the corporation operates the entire iLottery business as well as practically all of the iGaming in Canada.