PAYO - Payoneer Global stock rallies after Goldman Sachs upgrades to Buy

Payonner Global ( NASDAQ: PAYO ) shares are jumping around 7.3% in early Thursday morning trading after Goldman Sachs analyst William Nance raised the payments platform to a Buy from Neutral.

Over the next few quarter, the company's large customer float balances should yield higher revenues as rising interest rates drive up yields on customer cash, Nance said.

Nance thinks that Payoneer ( PAYO ) can generate $89M in float-related revenues in 2023 (17% of transactions profit), assuming it can capture a rate of 1.75% on those balances as well as an incremental margin of 100%.

In the long-term, Nance pointed out that Payonner's ( PAYO ) revenue growth will likely be supported by its "exposure to broad-based ecommerce growth over the next several years as well as the company's continued investment in B2B AP/AR solutions (a key contributor to growth in the previous quarter with a multi-trillion TAM opportunity and a take rate at 1.5x that of PAYO's gross take rate)."

While shares of PAYO are nosediving over 50% in the past year, SA's Quant Rating as well as the average Wall Street Analyst view the stock as a Buy.

Towards the end of June, Payoneer partnered with EC21 to expand Korean SMBs globally .

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