Payoneer acquires Easylink, expands in China

NEW YORK - Payoneer (NASDAQ: PAYO), a global financial technology company serving small and medium-sized businesses with a market capitalization of $2.39 billion, has finalized the acquisition of Easylink Payment Co., Ltd., a licensed payment service provider in China. This move marks Payoneer as the third foreign payment platform licensed for online payment services in the country. According to InvestingPro analysis, the stock appears undervalued at current levels, suggesting potential upside for investors.

According to John Caplan, CEO of Payoneer, the acquisition is a strategic step to enhance their regulatory infrastructure globally and to provide better, localized products and services to their diverse range of clients in China, enabling them to expand their businesses internationally. The company's strong financial position is evidenced by its impressive 84.44% gross profit margin and 17.64% revenue growth in the last twelve months.

Established in 2005, Payoneer's mission is to bridge the opportunity gap for entrepreneurs and businesses worldwide by simplifying cross-border transactions. The company has developed a financial infrastructure that aims to remove barriers to international commerce, particularly for SMBs in emerging markets. With annual revenue approaching $1 billion and an overall financial health score rated as "Good" by InvestingPro, Payoneer demonstrates solid operational execution. Discover more insights with InvestingPro's comprehensive Research Report, available for over 1,400 US stocks.

While the press release includes forward-looking statements regarding Payoneer's future performance, such as projections of future revenue and EBITDA, these are based on assumptions that may change, and actual results could differ materially due to various risks and uncertainties. Analysts maintain a positive outlook, with consensus recommendations trending toward "Buy."

The acquisition is part of Payoneer's ongoing efforts to support its mission of empowering global trade for SMBs. This development is based on a press release statement and presents Payoneer's enhanced capability to serve its customers in China with regulated online payment services.

In other recent news, Payoneer reported fourth-quarter earnings that fell short of Wall Street expectations, with revenue at $224.3 million, missing the consensus estimate of $242.24 million. Despite this, the company achieved an 18% annual revenue growth and record profitability for the year, with full-year revenue reaching $977.7 million. Analysts at Keefe, Bruyette & Woods adjusted their price target for Payoneer to $10, citing generally weaker sentiment across fintech companies, though they raised their EPS forecasts for 2025 and 2026, reflecting strong underlying trends.

Goldman Sachs maintained a Buy rating with a $12 target, noting that Payoneer's fourth-quarter revenue and EBITDA outperformed consensus estimates by 8% and 15%, respectively. Similarly, Benchmark reiterated a Buy rating and a $12 target, suggesting that the market's negative reaction to the earnings report might be short-sighted, given the company's conservative guidance and potential for future performance. Northland Securities also maintained a positive stance with a $14 target, highlighting Payoneer's consistent growth trajectory and strong end to 2024.

Payoneer's CEO, John Caplan, emphasized the company's achievements, including new records for annual volume, revenue, and profitability, and outlined strategic initiatives such as the acquisition of Skuad and a pending acquisition of a China-based payment service provider. Despite these developments, concerns over deceleration in volume growth within the B2B and marketplace segments have been noted by analysts. The company's guidance for 2025 suggests revenues of $1.04-1.05 billion, aligning with consensus expectations, as Payoneer aims to expand its regulatory moat and enhance its financial stack.

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