NVIDIA launches Jetson Thor robotics computers for physical AI systems
On Thursday, Keefe, Bruyette & Woods announced an increase in the price target for Nayax (TASE:NYAX) (NASDAQ:NYAX) shares, raising it to $38.00 from the previous target of $33.00. The firm has maintained a Market Perform rating on the company’s stock. The adjustment comes as the analyst anticipates mergers and acquisitions to bolster Nayax’s growth prospects for the year 2025.
The research firm has modified its earnings per share (EPS) estimates for 2025 and 2026 to $0.61 and $1.04, respectively, a slight decrease from prior estimates. This revision reflects an increase in EBITDA forecasts, which is somewhat offset by higher projected taxes. For 2025 and 2026, Keefe, Bruyette & Woods now expects adjusted EBITDA to reach $66.9 million and $95.3 million, up from previous estimates of $58.4 million and $89.3 million.
The price target increase to $38 is based on applying an enterprise value to EBITDA (EV/EBITDA) multiple of 14 times to the firm’s 2026 adjusted EBITDA estimate. Despite the uneven revenue trends, Nayax has demonstrated a strong performance in profitability, with improvements in gross profit margins (currently at 45%) and better operational expense management throughout the organization. InvestingPro subscribers can access detailed valuation metrics, financial health scores, and 8 additional ProTips that provide crucial insights into Nayax’s investment potential.
Nayax’s management has identified robust underlying trends that are expected to support organic growth in 2025. These include a strong average revenue per user (ARPU) growth and an increase in managed devices. Additionally, the company anticipates further growth contributions from mergers and acquisitions. The research firm underscores that successful execution in both organic and inorganic growth avenues will be crucial for Nayax’s stock performance moving forward.
In other recent news, Nayax Ltd reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of -0.16, which fell short of the forecasted 0.03. The company also reported revenue of $89 million for the quarter, below the anticipated $91.84 million, but highlighted a 34% year-over-year increase in revenue. For the full year 2024, Nayax’s revenue rose by 33% to $314 million, with a significant improvement in adjusted EBITDA, which quadrupled to $35.5 million. Despite the EPS miss, Nayax’s adjusted EBITDA of $12.8 million exceeded Keefe, Bruyette & Woods’ estimate of $10.2 million, underscoring the firm’s emphasis on Nayax’s effective expense management.
Keefe, Bruyette & Woods maintained their Market Perform rating on Nayax, with a price target of $33.00, noting the company’s potential for improvement through mergers and acquisitions. The company has set an ambitious revenue growth target of 30-35% for 2025, aiming for $410-$425 million. Nayax also aims to achieve a 50% gross margin and a 30% adjusted EBITDA margin by 2028, focusing on organic growth and strategic mergers and acquisitions. CEO Yair Nechmand expressed confidence in Nayax’s strategic direction, highlighting the company’s efforts in building a scalable and profitable business.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.