PSFE - Paysafe stock drops after Susquehanna downgrade as growth may take some time

Paysafe ( NYSE: PSFE ) stock is sliding 5.2% in Wednesday morning trading after Susquehanna Financial analyst James Friedman downgraded the payments stock to Neutral as the recent chief financial officer transition indicates it could take some time for the company's growth plan to take hold.

Alex Gersh will join Paysafe ( PSFE ) as CFO on Oct. 3, which cam after Bruce Lowthers took over as CEO in May.

"While we are encouraged by Gersh's resume and are eager to hear his plans, it could take some time," Friedman wrote in a note to clients. "Moreover, following the many downward revisions to PSFE's guidance, we are also concerned they didn't reiterate when announcing the transition."

Gersh is joining from Sportstradar, sometimes called the "Bloomberg of Sports," a provider of live-streaming data for online, mobile, and retail sports betting, Friedman noted. The new PSFE CFO also spent time as CFO of Paddy Power Betfair and had been CFO for NDS Group London, a provider of digital pay-TV software, he added.

In March, the SA Quant system flagged Paysafe ( PSFE ) at high risk of performing poorly . In May the Quant rating turned to Strong Sell from Sell, and currently has low marks in growth, momentum, and revisions.

SA contributor Busted IPO Forum, with a Neutral rating on Paysafe ( PSFE ), calls the company another fintech SPAC on the scrap heap

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