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On Tuesday, DA Davidson increased its price target for Paysign Inc. (NASDAQ: PAYS) to $6.00, up from the previous target of $5.00, while reaffirming a Buy rating on the company’s shares. The adjustment follows Paysign’s announcement last week of its first-quarter earnings, which showcased a significant year-over-year growth. According to InvestingPro data, the stock has surged over 22% in the past week, with analyst targets ranging from $5.00 to $8.25, suggesting substantial upside potential from current levels.
Paysign’s first-quarter performance exceeded expectations with a 41% increase in total revenue and a remarkable 193% surge in adjusted EBITDA compared to the same period last year. The company also updated its financial outlook, raising the midpoints of its prior guidance for both total revenue and adjusted EBITDA by 5% and 27%, respectively. InvestingPro analysis shows the company maintains strong financial health with a ’GOOD’ overall score, supported by a robust revenue growth rate of 26.77% over the last twelve months and a healthy gross profit margin of 57.92%.
DA Davidson’s decision to revise its price target upward is rooted in Paysign’s robust quarterly report. The firm has accordingly updated its forecasts for the company for the years 2025 and 2026. The analyst from DA Davidson noted the impressive quarterly results as the basis for maintaining the Buy rating and elevating the price target. Based on InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels, with additional insights available in the comprehensive Pro Research Report, which provides deep-dive analysis of 1,400+ top US stocks.
The analyst’s statement highlighted the positive momentum observed in Paysign’s recent financial outcomes. "Last week, Paysign reported impressive 1Q results, including 41% Y/Y growth in total revenue and 193% Y/Y growth in adjusted EBITDA. With 1Q results, management raised the midpoints of their prior guidance ranges for total revenue and adjusted EBITDA by 5% and 27%, respectively. Following the update, we have materially raised our forecasts for 2025 and 2026. We are maintaining our BUY rating on Paysign and raising our price target to $6 (from $5)."
Investors and market watchers will likely keep a close eye on Paysign’s stock performance and future earnings reports to see if the company continues on its growth trajectory as anticipated by DA Davidson’s revised forecasts. The company currently trades at a P/E ratio of 27.5x and has demonstrated strong profitability metrics, with positive earnings over the last twelve months.
In other recent news, Paysign, Inc. reported its first-quarter 2025 earnings, exceeding analyst expectations with an earnings per share (EPS) of $0.05 against a projected $0.01, and revenue of $18.6 million compared to the anticipated $15.11 million. This marks a 41% increase in revenue year-over-year, with net income rising by 737% to $2.59 million. The company also reported a significant expansion in gross margin, which increased by over 10 points to 62.9%. Paysign’s acquisition of Gamma Innovation has bolstered its position in the plasma donor engagement market, contributing to its operational success. Furthermore, Paysign has provided a revenue guidance of $72-74 million for 2025, anticipating a 25% growth, with pharma revenue projected to grow by 135%. In governance news, during the recent annual stockholders meeting, all seven nominees for the Board of Directors were elected, and the say-on-pay proposal was approved. Additionally, Moss Adams LLP was ratified as the independent auditor for the fiscal year ending December 31, 2025. These developments reflect Paysign’s strategic focus and operational efficiency in recent times.
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