Payoneer: Overblown Risks

• Payoneer dipped on a short report questioning their customer base.
• The company generated payments volume growth in excess of 60% in the last quarter based on e-commerce marketplaces.
• The stock is cheap based on trading at 5x '22 EV/S targets.
• This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More »

A short report questioned the validity of the Payoneer Global (PAYO) payments customers just as the company completed a SPAC deal. The stock only slipped slightly back below $10 on what should've been a very negative hit on the prospects of a newly public company. My investment thesis remains very bullish on the gig economy payments leader, as the market only now starts learning about the stock.

 

Update - July 28

So another analyst says $PAYO is cheap and the stock drops 4%... perfect sense. Maybe a double bottom here. 

• Cantor Fitzgerald analyst Josh Siegler initiates coverage on the e-commerce payments platform Payoneer Global (PAYO -2.1%) with an Overweight rating as he thinks the company's revenue growth estimates may be overly conservative.
• Siegler expects annual revenue growth of 27-30% over the next two years, and by 23-25% over the next three to five years.
• Siegler points out that PAYO is trading at an attractive entry point with a ~50% discount on enterprise value/sales.
• Provides a $13/share price target, which implies 37% upside from its current trade price.