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On Tuesday, William Blair analyst Cristopher Kennedy upgraded Nayax (TASE:NYAX) stock from Market Perform to Outperform, citing significant improvements in trading volume and performance. According to Kennedy, the inability of investors to build positions in Nayax due to previously low trading volumes was a key factor behind the initial Market Perform rating. However, the situation has evolved positively since then. According to InvestingPro data, Nayax’s stock tends to move independently from broader market trends, with a beta of -0.31, potentially offering portfolio diversification benefits.
Kennedy highlighted that since William Blair initiated coverage on Nayax, the company’s shares have surged 111%, outpacing the S&P 500’s 37% increase. Moreover, the average daily value traded on the NASDAQ has soared by nearly 1,600%. Nayax’s current valuation stands at 5.3 times its projected 2025 gross profit, which is favorable when compared to a benchmark group of high-growth commerce software and payments companies trading at nearly 11 times.
Despite the progress, Kennedy cautioned that low stock liquidity might continue to be a hurdle for Nayax, potentially leading to price volatility. Nevertheless, he expressed optimism about the company’s trajectory, stating that Nayax’s ongoing fundamental outperformance could attract more investor attention and further enhance liquidity.
The upgrade reflects William Blair’s confidence in Nayax’s ability to maintain its strong performance and potentially improve its position in the market. Kennedy’s assessment suggests that Nayax’s progress has been substantial enough to warrant a more favorable outlook from investors and analysts alike.
In other recent news, Nayax Ltd. completed a Notes and Warrants Offering in Israel, raising approximately $137.1 million. The proceeds, estimated to be around $134.3 million after deductions, are earmarked for general corporate purposes, including debt repayment and potential acquisitions. Keefe, Bruyette & Woods raised Nayax’s stock price target to $38, anticipating mergers and acquisitions to enhance growth prospects. Despite a recent earnings per share (EPS) of $0.05 falling short of Keefe’s expectations, Nayax’s Adjusted EBITDA of $12.8 million surpassed their estimate, highlighting effective expense management.
Additionally, Nayax has partnered with N-and Group to integrate its payment solutions into smart screens for self-service commerce machines, enhancing user experience across various industries. In another development, Nayax introduced a new feature for its electric vehicle (EV) charging kiosks, simplifying the payment process and providing real-time session details via a QR code. This enhancement aims to address common concerns among EV drivers regarding payment security and session management. These recent developments reflect Nayax’s strategic initiatives to expand its market presence and improve its offerings.
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