Paysafe stock heads lower after ‘challenging macro backdrop’ prompts RBC downgrade

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Shares of Paysafe Ltd. PSFE, +2.30% were falling 2.3% in after-hours trading Wednesday after RBC Capital Markets analyst Daniel Perlin downgraded the payment company’s stock to sector perform from outperform in the wake of the company’s latest earnings report. The company’s latest report and outlook point to “a challenging macro backdrop, especially for its European iGaming business, FX [foreign-exchange] headwinds, and difficult comparisons in its eCash business (given the lapping of stimulus).” Perlin acknowledged that the company’s new chief executive, Bruce Lowthers, has an “encouraging” plan to boost cross-selling and refocus the company around product innovation, but he said that “the counterbalance between cyclical headwinds and new innovation will likely take several quarters to work through.” He cut his price target to $3 from $4 in conjunction with the downgrade. Paysafe shares rose 2.3% in Wednesday’s regular session. They’re down 78.7% over the past 12 months as the S&P 500 SPX, +2.13% has fallen 5.1%.

This article was originally published by Marketwatch.com. Read the original article here.

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