Keefe Bruyette raises Nayax stock target to $40, holds rating

Published 14/05/2025, 12:50
Keefe Bruyette raises Nayax stock target to $40, holds rating

On Wednesday, Keefe, Bruyette & Woods updated their outlook on Nayax (TASE:NYAX) (NASDAQ:NYAX), a global fintech company, by increasing the price target from $38.00 to $40.00 while maintaining a Market Perform rating on the stock. The firm’s analyst cited confidence in the company’s growth potential and positive indicators within the Nayax business model, despite acknowledging some risks.

The analyst’s statement reflected a cautiously optimistic view, noting that despite a seasonally slower first quarter, Nayax’s management is confident about an acceleration in growth rates throughout the remainder of 2025. Supporting this optimism, InvestingPro data shows impressive revenue growth of 33.34% over the last twelve months, with a healthy gross profit margin of 45.07%. The firm’s expectations for Nayax’s earnings per share (EPS) for the financial year 2025 were raised, although the forecast for the following year remains unchanged.

Keefe, Bruyette & Woods highlighted Nayax’s recent earnings call, where management’s commentary provided encouraging signs about consumer health and the company’s ability to navigate tariffs. These factors contributed to the analyst’s incremental positivity towards Nayax’s financial model and the decision to raise the price target.

However, the analyst also expressed caution regarding the execution risk associated with Nayax’s anticipated increase in volumes and revenue growth for the rest of the year. The firm plans to closely monitor the company’s performance and management’s actions as the year progresses, suggesting that further reassessment may be warranted in the future.

In conclusion, while the recent quarter’s performance was solid and the company’s outlook appears promising, Keefe, Bruyette & Woods maintains their Market Perform rating, signaling a neutral stance on Nayax stock at the current time. The firm expects to gather more information from Nayax’s management in the upcoming quarter to better evaluate the company’s trajectory.

In other recent news, Nayax Ltd . reported mixed results for the first quarter of 2025, with earnings exceeding expectations but revenue falling short. The company posted adjusted earnings per share of $0.19, surpassing the analyst consensus of $0.02. However, revenue was reported at $81.1 million, missing the estimated $85.08 million. Despite this, Nayax experienced a 26.7% year-over-year increase in total revenue. The company’s recurring revenue, which includes SaaS and payment processing fees, rose 34.6% year-over-year to $62.2 million. Gross margin also showed improvement, climbing to 49.2% from 43.8% in the previous year. Nayax reaffirmed its 2025 financial outlook, anticipating revenue growth between 30% and 35%, equating to $410 million to $425 million on a constant currency basis. The company also maintained its adjusted EBITDA guidance of $65 to $70 million for the full year. Despite the positive earnings and outlook, the focus on the revenue miss was evident in investor reactions.

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