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On Friday, Keefe, Bruyette & Woods adjusted their price target for Payoneer (NASDAQ: PAYO) shares, reducing it to $10.00 from the previous $11.00, while maintaining a Market Perform rating on the stock. The adjustment came after the company’s fourth-quarter earnings release, which prompted the firm to also revise its earnings per share (EPS) estimates for the years 2025 and 2026.
Analysts at Keefe, Bruyette & Woods raised their EPS forecasts for Payoneer to $0.31 from $0.29 for 2025, and to $0.35 from $0.33 for 2026. These changes reflect the company’s strong underlying trends. However, despite these positive adjustments, the price target was lowered due to a generally weaker sentiment across fintech companies, which influenced the valuation multiple.
Payoneer reported a solid quarter, with particular strength in its Business-to-Business (B2B) and marketplace segments. The company also saw benefits from its monetization initiatives. Keefe, Bruyette & Woods noted that while the underlying trends are healthy, Payoneer’s management anticipates a return to mid-teens core revenue growth, which aligns with the forecasts shared during their investor day.
The firm’s analysis suggested that the market’s reaction to Payoneer’s earnings report was tempered by high expectations prior to the announcement. Additionally, there was some concern over a sequential softness in the growth of Instant Cash Payouts (ICP), although this was attributed to a strategic focus on larger ICPs, which are expected to contribute to average revenue per user (ARPU) growth. With an overall financial health score rated as ’GOOD’ by InvestingPro, which offers comprehensive analysis and 8 additional key insights for this stock, Payoneer maintains strong fundamentals despite recent market volatility.
In other recent news, Payoneer reported fourth-quarter earnings that exceeded expectations, with revenue and adjusted EBITDA surpassing consensus estimates by 8% and 15%, respectively. Despite these strong results, the company experienced a decline in stock price due to concerns over slowing growth in its B2B and marketplace segments. Payoneer provided guidance for fiscal year 2025, projecting revenues between $1.04 billion and $1.05 billion, in line with analyst expectations. Analysts from Goldman Sachs and Benchmark maintained a Buy rating on Payoneer, each with a price target of $12, while Northland Securities set a higher target of $14, citing the company’s strong performance.
The financial technology firm reported Q4 revenue of $261.7 million and adjusted EBITDA of $63.3 million, both exceeding Northland’s estimates. However, Payoneer missed Wall Street’s revenue forecast, reporting $224.3 million against an expected $242.24 million. The company achieved an 18% annual revenue growth and a record profitability for the year, despite a 33% year-over-year drop in Q4 net income. Payoneer also highlighted strategic moves, including the acquisition of Skuad and a pending China-based payment service provider acquisition. These developments underscore Payoneer’s efforts to expand its market presence and enhance its financial offerings.
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