Payoneer stock target cut to $7 at Keefe Bruyette & Woods

Published 08/05/2025, 12:24
Payoneer stock target cut to $7 at Keefe Bruyette & Woods

On Thursday, Keefe, Bruyette & Woods adjusted their outlook on Payoneer (NASDAQ:PAYO), reducing the price target from $8.00 to $7.00, while maintaining a Market Perform rating on the company’s shares. The decision follows Payoneer’s recent earnings report, which was considered solid despite a challenging environment. The company also announced the withdrawal of its financial guidance due to prevailing uncertainties.

Sanjay Sakhrani of Keefe, Bruyette & Woods noted that Payoneer is in a strong position, as indicated by management during the earnings call. Despite this, the analyst expressed caution, suggesting that the stock may face challenges until the tariff uncertainty is resolved. Payoneer management disclosed that tariffs could negatively impact annualized revenue by approximately 10 percentage points if the current severe scenario materializes.

The revised price target reflects concerns over softer revenue growth amid the ongoing tariff disputes. Sakhrani acknowledged the potential for a less severe outcome between the United States and China, which could benefit Payoneer, but the firm has opted not to base its current rating on that possibility. The analyst believes that investors who are willing to bet on a more favorable resolution may find Payoneer worth considering, given the company’s strong management performance to date.

The update from Keefe, Bruyette & Woods comes at a time when many companies are grappling with similar uncertainties in the global trade environment. Payoneer’s ability to navigate these challenges while maintaining solid quarterly results has been noted, yet the broader tariff issues remain a significant factor for the company’s outlook.

In other recent news, Payoneer Global Inc. reported its first-quarter 2025 earnings, which showed a miss on earnings per share (EPS) expectations. The company posted an EPS of $0.05, falling short of the forecasted $0.09. However, revenue slightly exceeded projections, coming in at $246.6 million against an expected $244.73 million. Despite the revenue beat, Payoneer has suspended its full-year 2025 guidance due to potential tariff impacts, which could pose a $50 million revenue headwind. The company’s B2B segment showed significant growth, with revenue increasing by 37%. Analysts from Wolfe Research and Goldman Sachs have expressed concerns over the EPS miss and the suspended guidance, highlighting the uncertainty in the global trade environment. Payoneer is actively working on expanding its regulatory infrastructure and product offerings to support future growth. The company remains focused on supporting its customers through trade disruptions and expanding its global footprint.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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