Updated Analyst Coverage Comments:
Seems to be a little of "sell the news" going on as I feel there was lots of buying the rumor prior to this. Nevertheless, results were great! Strong top line growth, great uptick in Gross margins and EBITDA climbing nicely as the Company starts to realize economies of scale and doesn't have to increase SG&A as much to support top line growth. Big things to come with the GPR card - Share price needed a pause (and for some reason always seems to do this after blowout earnings).
Hope to see many of you at the shareholder meeting - After all, my schedule ended up working perfectly to slide it in as I was close by for a conference the day before.
See below updated commentary from analysts.
Maxim Group:
• 1Q19 results beat or matched consensus, and management reiterated 2019
guidance, which would represent a y/y increase in revenue of 62%-71% and a y/y increase in adjusted EBITDA of 104%-145%.
• The gross profit margin increased linked-quarter due to a mix shift in lines of business. We expect further increases.
• We maintain our price target at $10, which equates to a 2020 EV/revenue multiple of 7.1x, representing a 31% premium to the average of the two most relevant comparables. We regard this premium as warranted given PAYS’ high growth potential relative to these peers: average estimated peer revenue growth of 8% in 2020, versus 72% for PAYS.
BTIG:
Paysign, Inc. (PAYS) – until recently known as 3PEA International – had a high bar to clear as its 1Q19 earnings report approached given the stock’s surge of almost 141% since the beginning of the year. PAYS cleared that hurdle to the extent that it could, reporting 1Q19 beats on all relevant metrics: revenue, gross margin, adjusted earnings per share and adjusted EBITDA.
We are reiterating our Buy recommendation on PAYS and our price
target of $9.50 based on 19x the company’s FY21E EBITDA of
$25.1mm. We continue to believe PAYS’ combination of rapid revenue
growth, driven by both its core plasma donation prepaid debit card
business and its emerging pharma copay business, and its expanding
margins merit a premium multiple for the stock
