PAYO - Jefferies initiates Payoneer at Buy on first-mover advantage geographic reach

• Jefferies on Monday initiated coverage of Payoneer Global ( NASDAQ: PAYO ) at Buy, citing its first-mover advantage, geographic reach, and products/services that distinguish it amid a fragmented competitive landscape.
• Shares of Payoneer ( PAYO ) gained as much as 5.3% in morning trade on Monday.
• "We're favorable on PAYO's large/growing end-markets and its entrenched position as the leading multi-currency digital wallet enabling SMBs/freelancers/remote workers to conduct cross-border commerce, and the ongoing mix shift to B2B should drive a higher multiple over time," said analyst Trevor Williams.
• "We model $788M of revenue for FY23 (~7% above Street, 29% Y/Y growth), with the upside largely on interest income. Our adj EBITDA estimate of $69M for FY23 is ~10% above the Street largely due to our higher revenue expectations," Williams added.
• Jefferies set a price target of $7 for Payoneer ( PAYO ), implying 23.9% potential upside to its last close.
• The research firm's views are in line with bullish sell-side ratings , but contrasts SA Quant's Hold rating .
• Earlier, Payoneer ( PAYO ) received in-principle approval for major payment institution license in Singapore .

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