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Paysafe continues to grow, now what?

Paysafe (PSFE) has made a name for itself as a specialist payments provider. This status recently caught the eye of a gambling operation in New York and thus produced a new customer.

This is just the latest in a growing series of measures taken by Paysafe over the past few weeks. The growth, coupled with Paysafe’s attractive pricing at the moment, makes me optimistic about the future of the business.

Paysafe’s last 12 months is a study in decline. By April 2021, the company was up about $16 per share. Since then it has been mostly in decline with only slight boosts to recovery.

The biggest hammer blow for Paysafe came last November, when the company lost almost 50% of its already falling value, falling from around $7.27 to around $4.24 in a single trading day. .

The latest news should breathe new life into the company. It has partnered with Resorts WorldBET, the mobile sports betting operation for Resorts World New York.

This allows Paysafe to handle payments for sports betting at both Resorts World New York City and Resorts World Catskills. This is just the latest sports betting operation that Paysafe has as a customer. He has worked with several other companies since the market went live in January.

The Taking of Wall Street

As far as Wall Street is concerned, Paysafe has a moderate buy consensus rating. This is based on four purchases, two reservations and one sale attributed in the last three months. Paysafe’s average price target of $5.75 implies an upside potential of 60.2%.

Analyst price targets range from a low of $3.50 per share to a high of $9 per share.

Lack of support for dividends and hedge funds

As attractive as the outlook for Paysafe looks, there is a marked lack of support for the company in two key areas. First, its dividend. Paysafe’s dividend history is noticeably lacking, in that it has no dividend history to speak of.

Perhaps more distressing is the situation with hedge funds. The TipRanks 13-F Tracker reveals that Paysafe’s hedge fund holdings are down. There was a significant increase in the amount of Paysafe held between July and October 2021.

This rise did not last into the new year, however, as hedge funds eliminated about half of their holdings in January 2022. In fact, the exit of hedge funds came just weeks before the big drop in November. .

looking for a return

Paysafe has been laying the groundwork for a comeback over the past few weeks. About two weeks ago, Paysafe turned to JP Morgan as their primary banking partner. This gives Paysafe the ability to offer more options to potential customers.

As we have already seen new interest in Paysafe, being able to offer more services should go a long way in attracting them and getting them to pay Paysafe.

It is also making clear inroads in the online gaming sector. Previously, the company announced deals with Bally, Hard Rock Online Casino New Jersey, and Wildwood Casino in Colorado.

It’s easy to worry about the company’s lack of a dividend. It’s also easy to get pissed off about the huge downturn the company has suffered over the past year. Watching the retreat of hedge funds is also very disturbing.

However, a review of the price targets currently set by the company suggests great upside potential. When potential investors can buy a hundred shares for the price of a used laptop, it’s a good opportunity for speculation. This will not suit income investors at all.

For growth investors, however, the company has little leeway to go anywhere but up. A recovery to last March’s levels would represent a threefold increase.

Final views

Just looking at Paysafe’s overall picture suggests that its worst days are behind it. Another three-quarter loss would send Paysafe falling into penny stock territory. The title is currently at an attractive price. It also means adding new customers with surprising regularity.

Better, as online sports betting spreads in the United States, Paysafe has a great chance to grow further. He has a solid business volume which should help him attract more business as he moves forward.

An attractively priced stock with increasing customer interest in a market that is itself growing is very good news for Paysafe.

This is also good news for Paysafe investors, who have little choice but to go up with this company.

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